The major difference with the Net MD MZ-N1 and previous MD players is that it features PC connectivity. The only way you could connect previous MiniDisc players to a PC was either with an optical digital output from your soundcard (and then manually record the audio signal on your player) or by purchasing an expensive accessory from Sony. Building PC connectivity into the MD is a step in the right direction, but it uses a USB 1.1 cradle (no USB 2.0 or FireWire).

Also, because it is a Sony product it features digital rights management and anti-piracy measures. This means that any music you might want to listen to is coded in ATRAC3, which is Sonys MP3-like music format that has copy protection built in. Its a lossy format, so if you want to copy MP3s to the Net MD they have to be recoded with this second lossy codec. An advantage is that you can record over five hours worth of music with the Long Play feature.

The encoding rates are slightly different to MP3, with a choice of 66Kb/s, 105Kb/s and 132Kb/s. The audio difference from a ripped CD is negligible, and only a tiny discrepancy when you transcode an MP3 to ATRAC3.

The bundled OpenMG Jukebox software makes ripping CDs and cataloguing music easy, but any tracks that get sent to the player have to be checked out. Only three copies of a song can be checked out at any time, so you have to check them back in when you want to change tracks. Laborious, yes, but it is another way of preventing digital music piracy.

The media is not as cheap as CD, but it is still affordable. An 80 minute MD, giving around five hours long play, costs around $10. MP3 CD is cheaper, but Net MD is funkier.