Sirius Satellite in exclusive deals with Audi, VW
March 17, 2006 10:45:38 (ET)
NEW YORK (Reuters) - Sirius Satellite Radio Inc. (SIRI,Trade) will be the exclusive provider of the pay-radio service to automaker Volkswagen AG's ((VOWG.DE)) namesake brand and its premium Audi AG ((NSUG.DE)) affiliate, starting with the 2007 model year, the companies said on Friday.
Sirius, No. 2 in the nascent nationwide radio market to XM Satellite Radio Inc. (XMSR,Trade), said Audi had previously offered both services. Audi, in a separate statement, said it selected Sirius to reduce complexity in dealer ordering.
Both Audi and Volkwagen will offer Sirius through 2012.
Volkswagen, the world's fourth-largest carmaker, expects to equip about 80 percent of its vehicles with Sirius radio receivers.
Volkswagen will offer customers three complimentary months of Sirius radio. After that introductory period ends, consumers can chose to continue the service, which typically costs about $13 a month.
Shares of Sirius climbed 3.6 percent to $4.67 on Friday on Nasdaq, while XM shares slipped 2 percent to $19.76.
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