AT&T, Samsung and Napster are coming together to challenge Apple's iPhone with whom http://www.wireless.att.com/cell-phone-service/specials/iPhoneCenter.html AT&T already has an exclusive contract.
Samsung will release a new phone called the SLM which will allow customers to download music and videos from a catalogue of more than five million different songs and videos.
The clam-shelled phone itself features an uninspiring 2 megapixels digital camera with a 512MB memory and a 176x220 pixel TFT colour screen.
AT&T has also partnered with Pandora on other selected phone models and plans.
Dailytech reports though that Napster is quickly burning money and has lost around USD 73 m in venture capital.
The Napster service costs GBP 3.75 for five track downloads which is higher than one would expect to pay for iTunes and the phone itself costs USD 150 with a contract agreement.
Neither Napster nor Samsung have unveiled plans to extend this offer to Europe and beyond.