The Starmate Replay is 5 inches by 1.9 inches, less than an inch thick and weighs 3.9 ounces, the New York-based company said. Users can record and store up to 44 minutes of Sirius programming.
The device comes with a car mount and is expected to be available in October for $129.99. An optional home kit is expected to be available for an additional $39.99.
The company on Thursday also introduced a car radio. Sirius One, which is about the same size as the Starmate, but weighs 5 ounces, is set for release in October at a price of $79.99.
In introducing the devices, Sirius is looking for sales during the busy holiday season.
"The Starmate Replay and Sirius One offer an easy and inexpensive way to get Sirius," said Bob Law, senior vice president and general manager of Sirius's Consumer Electronics Division.
At the end of the second quarter, Sirius reported having 1.8 million subscribers. The company is battling for customers with its chief rival XM Satellite Radio Holdings Inc., which ended the quarter with 4.4 million subscribers.