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XM Teams With Starbucks

Washington — XM Satellite Radio said it is teaming up with Starbucks to create a “Starbucks Hear Music Channel” this fall to be available on XM. In addition, beginning in 2005, Starbucks will broadcast the XM channel in its more than 4,000 stores nationwide, said XM.

Starbucks acquired the Hear Music record label in 1999. It sells Hear Music CDs in its stores and pipes in programming from Hear Now music into the stores.

Earlier this year, Starbucks opened the first Hear Music Coffeehouse in Santa Monica, Calif., where consumers can create personalized CDs in the time it takes to order a latte. Starbucks also plans to roll out this fall a CD burning service at select Starbucks locations.

XM’s president and CEO Hugh Panero said, “XM’s presence at Starbucks locations will greatly accelerate awareness of our popular satellite radio service.”