Sirius Satellite Radio said it has reached an agreement with Microsoft to collaborate in the further development of video applications and added that it will use Microsoft’s Windows Media Video 9 for its mobile video platforms.

Sirius executives said it plans to offer a video service in the second half of 2006 and expects to devote two to three channels of premium video content designed primarily for children.

“We will take the DVD experience to the next level, offering the best content easily available to families and consumers,” Sirius CEO Mel Karmazin said in a prepared statement. “Working together with Microsoft will help ensure the development of a solid and user-friendly video platform for Sirius for years to come.”