Giving it a potential boost in competition with market leader Apple iTunes, Napster has signed a deal with XM to create a combined service giving subscribers access to both satellite radio and online music.
Dubbed “XM + Napster,” offering will feature XM’s 150-plus channels and Napster’s 1 million-plus songs for a single monthly fee expected to be less than the $22.90 cost of purchasing each separately.
Napster has the most to gain from the combo, as it will potentially gain access to XM’s fast-growing base of 4.4 million subs. As of March 31, Napster had 410,000.
XM + Napster is designed to work with a device Samsung is launching for the holidays that will allow subscribers to download and play XM programming as well as digital music. XM + Napster is expected to launch along with the portable music player.
Napster is designing a new version of its application for the service that will feature tracks recently played on XM shows. Users will be able to push a button while listening to XM to tag songs they want to download later from Napster.
Deal marks the first time a sat radio network and online musicstore, the two major kinds of outlets for digital music, have formed an alliance.
XM competitor Sirius has previously talked with Apple about creating a similar device and service combined with iTunes, but the two companies haven’t reached an agreement.
Shares in XM closed up 1% Wednesday at $36.85, while Napster stock rose 4% to $4.93.