The First Memory-Stick Single Release

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CDs, downloads ... and now band launches the memory-stick single

Keane's new gimmick to lure fans back to the high street

Forget vinyl, CD and digital downloads. The record industry has a new gimmick to woo music fans back to the high street: a computer memory stick the size of a cigarette lighter.


The gizmo, which will cost £3.99, will allow rock fans to transfer Keane's new single, Nothing In My Way - as well as other tracks, videos and screensavers - on to their own computer or MP3 player. Aimed at techno-savvy fans and older downloaders, the gadget will go on sale exclusively in HMV stores from October 30. Record label executives hope that it will develop into a credible alternative to the CD.

"You just plug it into your PC or Mac and that's it," said Jon Turner, general manager of Island Records, Keane's label. "We're very keen to see people's reactions to it."

Mr Turner sees the device as a one-off chance to test the water with consumers, but said there could be more releases in 2007. "I do see it as a potential format for the future, but I don't think it's going to run down the use of digital services," he said. "It's an interesting experiment."

While record labels have enjoyed surprisingly buoyant sales over recent years, the rise of internet downloads - spurred by the success of Apple's iPod music player and its iTunes online store - has cut into their profits and taken away much of their control. Apple dictates the price of downloads, which restrains the amount that music companies make from each sale. And the battle over pricing has created a testy relationship between the different arms of the music business, with Apple chief executive Steve Jobs last year attacking labels for what he called "greedy" behaviour.

The long-term gamble is to revive the singles market, which has suffered from over-commercialisation and an unhealthy obsession with teenage pop fans, who are deserting physical sales in droves. Digital downloads now account for around half of all top 40 sales.

"Everything is moving towards download now," said Simon Dyson, a music analyst with Informa. "I can't see this being something that's commonplace, but it's a good idea for people who haven't completely moved to downloads and breaking them in gently."

Many have switched to sites such as the Russian download service AllOfMP3.com, which rocketed to prominence by presenting itself as a legitimate store selling music at vastly discounted prices. Although the site's owners held a virtual press conference this week to protest their innocence, the world's record industry maintains its stance against AllOfMP3. But whatever the arguments about the site's legitimacy, it is clear that both legal and illegal downloading have had a dramatic influence on the behaviour of young music fans, who have traditionally been the heartland of the top 40. As a result the music industry has been casting around for new ways to entice buyers.

Last week Jamiroquai, one of Britain's biggest selling groups, announced it would launch a new greatest hits album on mobile phones three weeks before it was being officially released on CD. Fans on the O2 network have been given the chance to pick their favourite songs and videos from a selection, and some of those buying new handsets are being given the album for free.

Retailers may be hoping that memory stick singles and bundled phone downloads could bridge the physical and virtual worlds, handing an extra edge to more traditional shop sales over their internet counterparts.

"We're a music specialist, so we always see our remit as giving customers as much choice as possible," said Gennaro Castaldo, a spokesman for HMV. "This sort of thing helps reinforce the idea that we're not just a physical retailer, but that we're also moving into a digital space."

Mr Castaldo added: "Some people will think it's fun, but others will keep buying vinyl, CDs and other formats."

History suggests, however, that it may be difficult to carve market share for yet more formats. Two years ago Robbie Williams's greatest hits album went on sale in a new memory card format aimed at mobile phones and handheld computers, but its high price and limited scope failed to catch the public's imagination.

Mobile music downloading has also refused to take off, largely thanks to extortionate costs and technical problems. But Mark Mulligan, a senior analyst with Jupiter Research, says the advent of memory card singles indicates the changing mindset of the industry - even if they don't end up turning into mass-market products.

"It's a great initiative in terms of being more adventurous," he said. "The music industry is getting much more imaginative."

But he was unsure if Keane would signal the arrival of a completely new format. "It has got one distinct advantage, size. But you're talking about something that just plugs into a computer - so it doesn't actually offer any fundamental advantage over CD."
http://arts.guardian.co.uk/news/story/0 ... 55,00.html
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