This reminds me of the modern fisher price record players.
The old ones were traditional music boxes, and each record had the musical notes.
The new ones have the score built in to the player, and each record just provides an ID for which track to play. So you can only play music that is built in to the device.
The figurines don't actually contain the music, they just have an NFC chip in them. The Tonie Box is connected to wifi and downloads the content.
The child doesn't really know any better though, it still gives them the physical experience without a screen.