Napster Inc. and XM, a satellite radio provider, are to collaborate on a new online service
that will enable XM's subscribers to buy music they hear on the paid XM radio service. Since XM has some 4.4 million subscribers, this is a great opportunity for Napster to gain more business. Together, they plan to jointly launch "XM + Napster" in the fourth quarter of 2005, when new XM/MP3 players are ready that will let users bookmark songs they hear while listening to the radio for future purchases online. When such an MP3 player is connected to a personal computer with an internet connection, the new service will match the marked XM titles with songs in Napster's catalogue so that they can be purchased.