Iomega lets users play MP3s from Zip disks

Iomega, creator of the Zip drive, has unveiled an MP3 device for playing music stored on its 40Mb PocketZip disk.

The player, called HipZip, costs $299 and will be available from Iomega's website on Monday. It supports Microsoft's Windows Media format and digital rights management technology to ensure copyright protection.

Each PocketZip can hold 80 minutes of music, and Iomega is positioning it as a cheaper alternative to flash memory cards. It costs $10 per PocketZip disk to create an average music collection of 20 disks, according to the company. Building an equivalent collection using solid state memory cards, favoured by most MP3 players, would cost almost $4000 and take up twice the storage space, said Iomega.

Microsoft's Windows Media Player 7 has been chosen as the default PC jukebox. It includes an internet radio tuner and a media guide, and enables consumers to download and play back audio and video.