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So, what does the record industry do? They introduce a new physical medium for music: MicroSD memory cards with music on them. The new format is called SlotMusic, and I'm not entirely sure what the packaging for these things will look, but I bet it will be even less of a collector's item than both CD or a record. SanDisk calls the music "high quality," but they also call it "MP3" and these two words don't go together.
In a word, they're selling us music on physical media with all the common flaws (and none of the advantages) of digital music. It's not going to work at any price, let alone 7 to 10 dollars which is probably going to be the price tag for these things.