As reported in Wired, Japan's NTT has developed this new media format, a small, plastic card called Info-MICA that can be cheaply mass-produced and can now hold 1GB of data (they plan on upping this to at least 10GB in the future).
They're read-only and the per-unit cost will supposedly be low, but only when produced in large batches on expensive machines. NTT is shopping Info-MICA to music labels who they hope will show interest because they claim the media will be tough to pirate.