Speaking of iPod killers...

The new 40 GB RCA Lyra Jukebox is a tiny digital music player that doubles as a hard drive. Like the 40 GB iPod, it can hold thousands of songs. The new Lyra also uses a USB 2.0 connector for quick file transfers, and it fits in the palm of your hand.

In this video interview, Dave Arland, VP of corporate communications for RCA, was asked why the updated 40 GB Lyra Jukebox is better than Apple's iPod. What did he say? We'll find out... right after this.

Friendly announcer's voice here: "TechRepublic. Real World. Real Time. Real IT." (Joke. Watch the video.)

Okay. We're back.

The new Lyra Jukebox has a built-in FM tuner, and the ability to record FM radio (in MP3 format). It supports Windows Media (WMA) and mp3pro audio files (iPod doesn't). It's also a bit lighter (5.5 oz versus 6.2 oz for the 40 GB iPod).

RCA's spokesman doesn't mention these features. When asked, "What recommends [your product] over an iPod?" he answers:

"The RCA Lyra products work with the PC. So since most consumers have PCs, not Apple computers, you're able to easily take the MP3 files you already have and drop them right into a device like this."

Perhaps Dave is unaware that every new iPod works with both Mac and Windows computers, and that Apple has been shipping Windows-compatible iPods since July of 2002.

Dave continues:

"Our products have typically more memory and they cost less than the Apple products, so that's one difference."

In fact, the new Lyra has the same amount of memory as the 40 GB iPod that was introduced last September. Perhaps he's thinking of the $300 Lyra 2840, which offers more memory than the comparably priced iPod, but in a bigger, heavier package.

He's right about the price, though, at least for now. The new, smaller 40 GB Lyra Jukebox has a suggested retail price of $449 and the iPod sells for $499. We'll see how much a 40 GB iPod costs by the time the new Lyra actually ships "in the March/April time frame."

Finally:

"We're also adding the ability to have secure music downloads now, with services like MusicMatch. So a consumer can go to MusicMatch.com, they can buy the content they want, they can play it on their computer, of course, but now they can also play it on a portable device."

There are two ways to read this: either he's touting the addition of DRM to digital files as a good thing for consumers (unlikely) or he's trying to say that the new Lyra Jukebox will come bundled with MusicMatch software that makes it possible to organize and buy music, just like the iTunes Music Store. Except that MusicMatch purchases are encoded in copy-protected WMA format.

(I wonder if the new Lyra will be bundled with MusicMatch Plus or just the Basic version you have to pay $20 to upgrade?)

All in all, I bet Dave wishes he hadn't been asked him to compare the new 40 GB Lyra with the iPod -- especially now that RCA has to compete with both the iPod and an HP-branded iPod as well.