I think that for media players it might be more appropriate and I do see that normal MP3 players will be phased out at some point and everybody will lug around media players. I do have one, but I find it’s uses quite limited. I have an Archos and I normally keep it for a removable hard drive.

Maybe I’m not mobile enough. I’m looking forward to an all inclusive device, that will correctly assemble the functions of an MP3 player, media player, cell phone, PDA and more all in one compact package.

Infinium Labs: The product looks great… and they are still a going concern from the quick glance at a recent SEC filing they were still paying people as of 3/31/06. I also found this rather critical article about Infinium
http://www.hardocp.com/article.html?art=NTEy

I looked at the findaway ventures and their Playaway product and thought the idea was interesting for airport/ other impulse styled purchases but the price point was to high. I’d be really hard pressed to cough-up $40 bucks for an audio book that I could download for free at demonoid. For $10 I’d be willing to commit to their product but for what they are asking I need to have either alot more books or a more personal service.

Siddiq

This type of business model is freaking tough! Launching a downloadable media site in itself is extremely challenging. Content providers want sizable up front cash to transfer their product over, margins are amazingly slim on download sales, and the back end infrastructure for an appealing media site can cost millions in development/upkeep…not to mention the challenge of attracting users.
Additionally, the hardware/physical product business is a gigantic pain…especially in this space. Customer returns alone can paralyze a business like MusicGremlins, upfront cost to manufacture the units is beyond substantial, you have to order very large quantities in order bring the per unit cost down enough to compete, most of the time your building the units in China or south of the border which can be disastrous if hardware problems arise.

All of these trials have come together to absolutely kill a number of ambitious companies. Check out Infinium Labs for a great horror story. 3 years ago they were coming out with a gamebox that you would hook up to your T.V. and download games to as well as play against others and all sorts of other fun stuff. These guys were extremely well funded and became absolutely crippled by hardware development issues not to mention content acquisition nightmares. Now, they are an OTC public company (delisted in 2004 I believe) and will be lucky to have money for payroll next month. Check out Findaway Ventures too. Those guys have come out with a $35+ content locked media player (think of having a CD player a CD loaded and the lid welded shut) that is getting great distribution and press but faces challenges in being able to bring their cost per unit down enough to make it appealing to a decent sized audience.

Apple currently rules this space because they can make money on their players, have a SIMPLE model, have huge R & D budgets, royalty-like status with content owners, and the same hip public image tied to their players that Sony’s Walkman enjoyed in the mid-80’s.

Anyone who wants to play this game better be willing to cut big checks, take bigger risks, and be creative enough to revolutionize the industry.