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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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