Sirius, Microsoft Cut Mobile Video Deal

NEW YORK At the Consumer Electronics Show in Las Vegas, Sirius Satellite Radio said Wednesday that it has selected Windows Media Video 9 for use in its mobile video platform, and has reached an agreement with Microsoft to collaborate in the further development of video applications.

Sirius will offer a video service in the second half of 2006, and expects to devote two or three channels of premium video content designed primarily for children.

"With the explosive growth of DVD sales, video capabilities in automobiles are quickly becoming a prime feature for families and travelers," Sirius said in a statement. "The automobile industry is increasingly interested in offering entertainment features to their new car buyers." According to Sirius, its automotive partners are eager proponents of the service, given the strong demand for rear-seat video entertainment.

“We will take the DVD experience to the next level, offering the best content easily available to families and consumers," said Mel Karmazin, CEO of Sirius. “Working together with Microsoft will help ensure the exciting development of a solid and user friendly video platform for Sirius for years to come."

According to Microsoft, the high-quality and compression efficiencies of this technology are well suited for reception of video in mobile environments.