Sirius taps music industry leader as creative adviser

NEW YORK, Jan 24 (Reuters) - Sirius Satellite Radio Inc. (SIRI.O: Quote , Profile , Research ) said on Monday it entered a strategic alliance with Interscope Geffen A&M Records Chairman Jimmy Iovine, who will act as creative adviser and consultant to Sirius.

Iovine, who helped create Shade 45, the recently launched channel co-produced by rap star Eminem for Sirius, will also offer the company marketing and promotional opportunities with the label's artists.

Sirius has been trying to establish the fledgling satellite radio medium as a magnet for top talent, both on and off the air, in order to boost its subscriber base. It is also trying to close the gap with larger rival XM Satellite Radio Holdings Inc. (XMSR.O: Quote , Profile , Research ) .

Last year, Sirius signed ribald radio host Howard Stern to a five-year deal starting in 2006. It also named Wall Street darling Mel Karmazin, a former Viacom Inc. (VIAb.N: Quote , Profile , Research ) president, as its chief executive.

Iovine is one of the most respected executives in the music industry, starting in the 1970s as a producer and engineer for the likes of John Lennon, Bruce Springsteen and Patti Smith.

He started Interscope Records in 1990, which quickly became successful with such acts as Nine Inch Nails and Dr Dre. It was ultimately bought by Universal Music, the world's largest record label, and is home to such acts as U2, No Doubt, Sheryl Crow and 50 Cent.

Sirius shares rose 5 percent to $6.11 in premarket trading.