The latest company to take a crack at the iPod-iTunes digital music hegemony has announced plans to create a hybrid device that will offer users personalised radio stations playing a constantly updated library of records as well as the tracks that they own.

The service, called Slacker, lets people choose from more than 10,000 pre-programmed channels built around specific artists or genres, or to opt for an automated stream of songs picked according to a profile of the user’s musical tastes.

Slacker is available now as a PC-based service, but in early summer the company plans to launch a pocket-sized player that will play the music without needing to be connected to a computer. Whenever the device is in reach of a wi-fi network or a satellite connection it will recharge itself with music.

The player can also be used as a standard digital player, using songs or videos uploaded from a PC.

Different models of the device will be available, ranging from $150 to $299 (£78 to £156) for the US launch, the company said. No details were available about availability or pricing in other parts of the world.

The basic service will be free and supported by adverts, but Slacker will also provide a premium, ad-free service for $7.50 (£3.90) per month.

Internet-based radio stations have been growing in popularity, but analysts say that this is the first device to make “personalised music” portable – not tethered to a laptop, desktop computer or home media server.

Industry experts said that the offering was likely to prove attractive to customers. “They’re leveraging multiple distribution channels, so they won’t be just satellite radio and they’re not quite an online music provider either,” Susan Kevorkian, of the IT analyst firm IDC, said. “They’re providing a high level of ease-of-use for the consumer that no one else has offered before.”

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