Updated from 10:54 a.m.

Sirius

(SIRI) - Get Report

took aim at an underserved market Monday, rolling out plans to reach women with a 24-hour lifestyle channel run by Martha Stewart.

Stewart, Sirius chief Mel Karmazin and others at a midmorning press conference painted the deal as an opportunity to expand the reach of the growing satellite radio business. Sirius and rival

XM

(XMSR)

have become investor favorites in spite of their massive cash burn because of their growing popularity with the masses.

Sirius, which in recent years has signed blockbuster programming deals for Howard Stern and the NFL, has taken an aggressive approach to signing top media talent to draw subscribers to its pay radio offering.

Meanwhile,

Martha Stewart Omnimedia

(MSO)

sees the deal as a way to ride some of Sirius' growth as a media outlet and give it reach to women in cars.

The arrangement will help MSO "build a listening base," CEO Susan Lyne said during a televised news conference Monday, adding that Sirius allows the company to "reach out to a new audience."

No terms of Monday's deal were announced.

The new MSO channel is expected to help lure female subscribers and more advertising proceeds for the pay radio service, CEO Mel Karmazin said during the announcement. XM, which has signed some big programming deals like major league baseball, has relied more on strong partnerships with automakers like

GM

(GM) - Get Report

and

Toyota

(TM) - Get Report

to help sell subscriptions.

"Martha Stewart Living is the premier brand in lifestyle and how-to programming for women and their families. Martha Stewart Living Radio on SIRIUS will have tremendous appeal to women, who are completely underserved by traditional radio programming," Karmazin said in a press release.

"My mother goes to bed with her radio, gets up with her radio," Stewart said at a midmorning press conference explaining the deal. Shares of her company,

Martha Stewart Living

(MSO)

, also rose 2%, even as Stewart seemingly claimed that her daughter listens to the radio on her iPod. At the moment the

Apple

(AAPL) - Get Report

music device doesn't come equipped to get live radio signals.

Shares of Sirius were up 8 cents, to $5.23 and Martha Stewart jumped 73 cents to $20.30 in midday trading Monday.