Ads To Run On Some XM Music Channels
March 8, 2006 at 12:21 PM (PT)
XM SATELLITE RADIO will have to accept advertising on some of its music channels, as the result of an arbitration ruling in a dispute between XM and CLEAR CHANNEL. As a result of a 1998 agreement made when CLEAR CHANNEL invested in XM, CLEAR CHANNEL controls four XM channels: KISS, MIX, SUNNY and NASHVILLE. The ruling states that CLEAR CHANNEL is entitled to run commercials within the music programming that it provides to XM.
XM originally ran limited spotloads on many of its music channels, but eventually adopted a commercial-free music policy after competitor SIRIUS began touting commercial-free music. XM will reportedly launch four new commercial-free channels in an effort to maintain the same amount of commercial-free music choices on the platform.