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Sirius TV on the way

Sirius Radio moving into satellite TV for cars.

Sirius Satellite Radio may start beaming video through its service by end of next year, according to comments made by boss Mel Karmazin at a media summit this week in New York. Don't expert to see Howard Stern and his naked guests; The company will initially focus on video content that keeps the kids quiet in the back seat. That's probably the easiest sell to current users and a fairly affordable type of content for Sirius to license.

Sirius to offer satellite TV service in late 2007
CNET Networks

Bits is bits, so sending video shouldn't be much harder than audio with the main difference being that the car will need to have a back seat monitor or two. New car dealers will love that because it gives them a nice lever to sell more vehicles with lucrative rear seat entertainment (RSE) packages.

Sirius is doing this because the video service will drive a separate subscription fee around $13 a month, increasing average revenue per existing user while video serves as bait to attract users who so far aren't impressed by sat radio alone.

BTW, if you're waiting for Sirius and XM to merge, don't. This week FCC types told an investors conference "the public is well served with the current setup", meaning two separate but very similar sat radio companies.