Howard Stern and Oprah Winfrey might have lent some serious star power to subscription-based satellite radio networks XM and Sirius, but that doesn’t mean the fledgling medium is ready for prime time.
This year, XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. have to renegotiate their royalty agreement with record labels. Not only is the music industry intent on raising the licensing fees, it wants to stop the introduction of new satellite radio receivers that work more like an iPod than a radio.
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