BUSINESS 2.0:

Tuning in to a Wi-Fi-Enabled MP3 Player

Robert Khedouri's radio gave him the idea for an innovative feature on the wireless MusicGremlin.

By Siri Schubert, Business 2.0 Magazine

(Business 2.0 Magazine) -- The Problem Guitar player and songwriter Robert Khedouri hated the process of downloading individual songs to a computer and then to an MP3 player. He wanted to make it as fun and as easy as using a radio.

The "Aha!" Khedouri thought, Why not use open Wi-Fi networks to allow the seamless transfer - and sharing - of music? "I imagined a platform that not only allows downloads of individual songs but also pushes new content onto the device," he says. Now, MusicGremlin subscribers, who pay a $14.99 monthly fee for unlimited downloads or 99 cents to own a song outright, can subscribe to "Gremlists" organized by mood, genre, or activity that are updated almost weekly.

The Payoff Backed with $10 million in funding from Allen & Co. and other investors, Khedouri debuted his MP3 player at the Consumer Electronics Show in January and began selling the gadget for $299 on Amazon.com (Charts) in June amid positive reviews from CNET (Charts) and the Wall Street Journal. Susan Kevorkian, an analyst at IDC, thinks the radio-inspired Gremlists will foster loyalty. As to whether the MusicGremlin will be a hit, stay tuned.  Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.