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AOL and XM Go Online

Satellite radio provider XM announced plans to work with America Online (AOL) to create an online radio service. The companies will create a co-branded service that will replace XM's current online offerings as well as AOL's AOL Radio and Netscape Radio services. The new service will give AOL subscribers free access to about 70 XM commercial-free radio channels, in addition to the 130 channels AOL currently offers. On this summer, the companies will also offer a free service that will include only 20 XM channels and the 130 AOL channels. Half of the 20 XM channels will stay consistent, and the other half will rotate in an attempt to introduce listeners to the different XM offerings. XM hopes the new service will encourage listeners to subscribe to its regular satellite radio service, which costs $12.95 per month.

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