BY PAUL MALONEY
Leading satellite radio provider XM will launch a premium Internet radio service early next month, according to a company announcement.

The new service, XM Radio Online, will be an online "simulcast" of XM's music channels and select non-music content, such as The Bob Edwards show (presumably, XM doesn't have the necessary rights to stream the "third party" content -- CNN, ESPN, for example -- it broadcasts).

The service will cost $7.99/month (the satellite service is $9.99/month, plus equipment costs), $3.99 if you're one of XM's 2.1 million satellite subscribers.

Having a full-time streaming service (currently, you can only listen to looped samples of certain channels) online could theoretically help XM grow their audience significantly. First, the delivery mechanism is something that many potential consumers already own for other purposes (a computer and Internet connection), thus there's no need to buy more equipment.

Secondly, many people are already accustomed to Internet audio. According to a recent Arbitron study (here), the monthly Internet radio audience is eight times greater than that of XM and Sirius combined.

Finally, the stream will most likely be available globally, while XM's broadcasts are limited to the U.S. (and soon perhaps, Canada).

XM has partnered with Dell Computers to launch the service, offering a free 30-day trial of XM Radio Online with a purchase of select computers.

"We are very excited to be making our commercial-free music line-up available on the Internet through XM Radio Online, and we're especially pleased to be working with a market leader such as Dell," said Hugh Panero, President & CEO of XM Satellite Radio. "We know that people who get XM's music channels through their Dell PCs are going to love the experience, just as our subscribers who enjoy XM in the vehicle, at home, or on the go."

"We're proud to be teaming up with XM to bring XM Radio Online to the digital home," said Mark Vena, Dell's Director of Digital Home Marketing. "This partnership is yet another indication of Dell's unique commitment to providing music lovers with more choices at a great value."