In the latest attempt to shore up sales of music on
physical media,
SanDisk Corp. and the four major music companies
plan to announce Monday a new format called slotMusic.
SlotMusic is be introduced in
mid-October at retail outlets including Wal-Mart
Stores Inc. and Best Buy Co. Each unit is to contain
an album, plus extras, on a compact memory card that
can be played on mobile phones, PCs and some portable
MP3 players. The cards are inserted into vacant slots
on phones and other devices. (The slots are
increasingly common on newer phones, but the placement
of the slot depends on the phone model.) SanDisk is a
maker of flash data storage card products.
People close to the record companies
and retailers said they view the effort as an
experiment. The initial batch of releases is to
comprise 29 albums, from all four of the big recorded
music companies: EMI Group Ltd., Warner Music Group
Corp.
Vivendi SA's Universal Music Group and Sony BMG
Music Entertainment, a joint venture of
Sony Corp. and Bertelsmann AG. The releases are
mostly by current pop artists including Rihanna, Ne-Yo,
Robin Thicke, New Kids on the Block, Weezer, Usher,
Chris Brown, Akon and Leona Lewis. In a nod to older
buyers, Elvis Presley is also represented.
The music is to be sold in the MP3
format, with no digital locks that prevent copying. An
adapter is to be included allowing users to transfer
their music to PCs via their USB slots. The albums are
expected to cost about $15 and are likely to be
stocked by retailers near CDs and portable devices
such as MP3 players and mobile phones.
CD sales have been decimated in
recent years, as consumers have migrated to digital
downloads, whether they pay for them or not. Earlier
this year Apple Inc.'s iTunes Store surpassed Wal-Mart
to become the largest music retailer in the world. The
record labels have tried various ways to prop up sales
of albums, which are more profitable than the 99-cent
single tracks that make up the vast majority of iTunes
sales.
The music companies over the years
have tried to persuade consumers to migrate beyond CDs
to a range of new formats, including DVD-Audio -- all
with limited success at best. But Daniel Schreiber,
general manager of SanDisk's audio-video business
unit, says slotMusic has a unique advantage, since
it's compatible with a vast range of devices people
already own, including hundreds of millions of mobile
phones.
"I don't have to convince you to buy
anything; you already own it," Mr. Schreiber says. "I
don't have to convince you to carry anything; you're
already carrying it."
- Ethan Smith at The Wall Street
Journal