Oprah Signs With XM

In the escalating battle for satellite radio supremacy, XM has dealt another blow to the Sirius network and at a discount price. XM announced yesterday that they have signed a three year, $55 million deal with Oprah Winfrey to introduce a new channel on their network called Oprah and Friends. The channel will feature regulars from the Oprah Winfrey show as well as a weekly program hosted by Oprah herself and her friend Gayle King.

The acquisition of Oprah Winfrey is a major milestone for XM in gaining subscribers. Already the fledging network has six million subscribers in contrast to Sirius' three million.

"When Sirius signed the Howard Stern deal, the obvious question was who else is big enough to move the needle," said analyst Craig Moffett. "Oprah is big enough."