NEW YORK - Sirius Satellite Radio Inc. said Wednesday it plans to sell a video service beginning in the second half of 2006 and will use software from Microsoft Corp. for the service.


Sirius, which provides satellite radio services for a monthly fee, said it is planning two to three video channels with programming aimed at children. It said car makers are interested in installing the service given the interest in entertainment for passengers in the back seats of cars.

On Tuesday Ford Motor Co. said it will begin offering Sirius radio as a factory-installed option in up to 1 million vehicles over two years beginning this summer.

Sirius and Microsoft also expect to work together on video for computers and home entertainment devices, Microsoft said. (MSNBC is a Microsoft-NBC joint venture.)

The satellite radio company?s former chief executive, Joseph Clayton, said in May that Sirius would introduce four and possibly as many as eight video channels for children riding in the back seats of cars. He told Reuters in February that Sirius was working on developing a video service.

Sirius lags behind rival XM Satellite Radio in subscriber numbers but it attracted widespread attention last year after it signed a deal with controversial radio show host Howard Stern and made media veteran Mel Karmazin CEO.

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