Sirius XM to Stream Satellite Radio to iPhones, iPods

Authored by Mark Hefflinger on March 12, 2009 - 8:15am.

Washington - Days after narrowly averting bankruptcy, satellite radio provider Sirius XM (NASD: SIRI) said on Thursday that it will try to boost its subscriber base by offering its services to owners of Apple's (NASD: AAPL) iPhone and iPod touch devices beginning this spring.

The company added just 83,000 net new subscribers during the fourth quarter, down from 1.1 million the year before.

Part of the problem, Sirius said, has been the sharp downturn in new car sales, since the bulk of its new customers come from factory-installed radios.

During a morning conference call, CEO Mel Karmazin said that streaming the company's content to iPhones and iPods will give potential clients the opportunity to sign up without the expense of purchasing specialized receivers.

"It behooves us to consider every possible way to grow our subscriber base," said Karmazin, who also is exploring the possibility of streaming the content through satellite TV provider DirecTV.

The company recently received an investment from DirecTV's owner, Liberty Media (NASD: LINTA), which allowed it to pay off maturing debt and avoid bankruptcy.

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