XM Free No More

XM Radio can no longer tout itself as "ad-free".

According to published media reports, an arbitration panel has ordered XM to inject commercials into some of its ad-free music channels.

The decision ends a legal tiff between the orbital broadcaster and Clear Channel Communications, which in 1998 invested in XM. The investment--made before XM went commercial-free--gave Clear Channel control over four of the satellite firm's music channels. The two firms later disagreed over whether ads should be permitted on those conduits.

In a statement quoted by Billboard Radio Monitor, an XM spokesman verified that the arbitration panel ruled his firm's adversary "is entitled to include commercials on the music programming it provides XM."

The four channels represent 2.5% of XM's roster of 160 subscription channels. A scant number--but it can no longer call itself truly ad-free. That honor belongs solely to another XM adversary, Sirius Satellite Radio.