In another development in the ever-interesting arena of all things audio, XM Satellite Radio (NASDAQ:XMSR) has teamed up with Audible (NASDAQ:ADBL) for an audio content offering that will include a handheld device that caters to both services. The service is due for launch in 2006. Audible shares moved higher by 15% on the news.

Both companies offer new methods to hear your way to entertainment and enrichment. XM, of course, is one of the two big names in satellite radio, along with rival Sirius (NASDAQ:SIRI). Audible, on the other hand, disseminates written content in an audible format over the Web -- think books on tape, only, uh, downloaded.

Is this the making of a dream team? Perhaps. It's not uncommon for those who endure long, grueling daily commutes to use audio books as their way of "reading" these days. Meanwhile, Audible can look forward to exposure to the many subscribers who have signed on for XM's service in recent history -- and most importantly, the newcomers that many expect XM to attract.

It hasn't been lost on many investors, though, that Audible faces an increasingly crowded space. Not only is podcasting a popular new pastime when it comes to downloadable content, but also book -- and Internet -- giant (NASDAQ:AMZN), a past Motley Fool Stock Advisor recommendation, recently said it will begin distributing audio versions of books through its popular Web site. What's more, Audible recently lost a high-profile deal with National Public Radio.

Although XM's stock price held steady, today's rise in Audible is good news for those who have held Audible shares through good times and bad. But those looking for a point of entry face a 15% increase in Audible's positive vibes.

Many investors are latching onto hopes for new avenues through which people consume content. Whether Audible currently deserves the kind of attention that stocks like XM and Sirius have gotten may be the bigger question for investors to ask themselves.

Read about recent interesting developments from both Audible and XM:

Or chime in on our Audible discussion board, where Fools are talking about the latest developments, including whether Amazon is a threat and the deal with NPR.

Alyce Lomax does not own shares of any of the companies mentioned.