Echo is joint effort between Best Buy, Hastings Entertainment , Tower Records, Trans World Entertainment (FYE, Strawberries and Coconuts), Wherehouse Music, and Virgin Entertainment. 

"We're trying to make digital music work in a mass market way, for millions of people," said Dan Hart, chief executive of Echo. "That hasn't happened yet."

According to the Hollywood Reporter, the plan is for retailers to give customers free “starter” CD’s that includes Echo application, which will provide bonus material to the fans that sign up for the service including free music downloads but at the same time it will gather information about the user and their computer activities including web browsing habits, tracking downloads and even tracking the songs the customer plays on their PC. The information will be used to study what customers appear to want so the retailers can gear their marketing towards tapping into those preferences.  

The practice of giving users an program that records their online habits and personal information and sends it off to be added to a massive database is nothing new, privacy advocates have coined the term “spyware” to describe such applications. 

The whole strategy of Echo has not yet been hashed out. In exchange for letting Echo collection information about their online habits users may receive bonus material that includes free digital songs, special emails from artists, online and in story promotional offers, as well as other inducements that the retailers dream up. Members may also receive a special card that they can take to the stores to receive special promotions, which may include free CD’s, discounts etc. 

Echo CEO says that the Echo program will also appeal to less tech-savvy customers as well as address selling points that current digital music products have missed,  "They're not reaching customers who have never downloaded music, they're not reaching customers who download just because they can't get it anywhere else, and they're still working on getting the licensing and pricing right," said Hart.

Not so fast. One big obstacle in the way of Echo’s success is licensing. The company has yet to reach a licensing agreement with any of the five major record companies, but Hart seems confident that such agreements can be made since the record companies and the retailers that are backing Echo have the same goal in mind; to sell more CDs.

There are a lot of unanswered questions remaining about what the final Echo offering will consist of. The plan is to roll out the service by the end of the year.