XM Satellite Radio has signed a three-year, $55 million deal with Oprah Winfrey to introduce a channel on the top US subscription radio service, sending their shares up as much as 10%.
The new channel, called "Oprah And Friends," is scheduled to launch in September and will include a weekly show hosted by Oprah, as well as programs featuring other personalities from her popular nationally syndicated TV talk show.
This should boost XM's new subscriber numbers and rekindle their brand. They have been hiding under rival Sirius' bright light for much of the last 6 months as they launched Howard Stern's show.
XM aims to have 9 million subscribers by the end of 2006 and wants to break even. They might even get there now thanks to the Oprah magic.