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CES 2009

SanDisk SlotRadio: Cheap and Easy Content

| Jan 8, 2009 | Mobile Devices | Show Update

| Analyst: Avi Greengart

Current Perspective: Positive
Vendor Importance: High
Market Impact: Low

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Event Summary

January 7, 2009 – SanDisk Corporation unveiled the Sansa slotRadio player and companion line of slotRadio music cards designed especially for the casual music consumer. The Sansa slotRadio player is a small, stylish, portable music device that comes bundled with a slotRadio card preloaded with 1,000 songs handpicked from the Billboard® charts, and professionally arranged into a variety of genre-themed playlists. slotRadio players cost $99 and cards cost $39; they will be available in early 2009.


Analytical Summary

• Current Perspective: Positive on SanDisk launching slotRadio because the company was having only modest success taking Apple on directly with its MP3 players, efforts to jump start subscription services have gone nowhere. slotRadio solves a real problem consumers have with digital content: it is too hard to transfer and manage. The radio metaphor is clearly a good one: consumers merely need to pick a “channel,” and that’s it. SanDisk has erred on the side of simplicity, and some consumers will consider it too simple, as the music is completely locked to the card, you cannot choose specific songs to listen to, or even repeat a song you liked. The slotRadio initiative is also extremely limited, as consumers with existing MP3 players (other than SanDisk’s Fuze), cellphones, or other devices will need to buy new hardware to use slotRadio.

• Vendor Importance: High to SanDisk, which is facing a global glut of silicon in the midst of a deep recession, a maturing MP3 player market, and needs a way to reenergize consumers around flash memory cards.

• Market Impact: Low on Consumer Handsets and Smartphones initially because, while it is obvious that a version of slotRadio for cellphones would make sense, SanDisk is just offering it on standalone players for now. Apple just announced that all iTunes music will be available without DRM – and with some tracks at just $0.69 – so individual song purchases may become more attractive. Still, SanDisk is providing an effortless alternative to iTunes song downloads, pirated content, subscriptions, and user-created playlists.


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