Tuning in to a Wi-Fi-Enabled MP3 Player

[CNNMoney.com reports] Robert Khedouri's radio gave him the idea for an innovative feature on the wireless MusicGremlin.
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 in June amid positive reviews from CNET 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.