Targeting a content market opportunity currently dominated by Apple's iTunes, both Toshiba and SanDisk have announced plans to expand the delivery of digital media via SD cards.

Toshiba announced on Wednesday it would make a $20 million equity investment in MOD Systems, a US-based provider of digital content delivery systems to the retail sector, adding to the $4 million investment it made in MOD in September 2007.

MOD's business plan sees it provide retailers with a digital media delivery system that allows consumers to download digital content for burning to an optical format. In spring 2009, the company will expand its current music download system with a new system, bringing direct downloads of entertainment content including movies and TV drama series into the retail sector. Consumers will be able to use SD cards for the downloads.

Noting "growing consumer demand for new ways to purchase digital entertainment," Toshiba said it will develop dedicated set-top boxes for the MOD service that allow consumers to watch content on TVs, and also develop portable devices for content viewing.

The Tokyo-based memory maker will also produce and market high capacity SD cards for the system.

According to Toshiba, more than 4,000 video titles will be available by the time the MOD service launches. Initial downloads will be in standard definition content, and the service may also be applied to downloads of HD content in the future.

Meanwhile, Toshiba rival SanDisk on Monday announced its microSD cards will soon be made available with pre-loaded, DRM-free MP3 music from EMI Music, SONY BMG, Universal Music Group, and Warner Music Group.

Dubbing the physical media format "slotMusic," SanDisk said the cards will first be available at brick-and-mortar and online stores throughout the US, including Best Buy and Wal-Mart, with Europe to follow.

Users will insert the 1Gb capacity cards into their microSD-enabled mobile phone or MP3 player to hear the MP3-based music tracks, which will be played back at up to 320 KB per second.

SlotMusic cards will be packaged with a tiny USB sleeve for interoperability with Windows, Linux, and Mac computers.

Neither Toshiba nor SanDisk released pricing information for their respective technologies.

By Suzanne Deffree, Managing Editor, News - Electronic News

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