CD-Wow Fined £41m And Told To Stop Selling Cheap CDs

I just spotted a very sad story on the BBC, reporting on how UK Online retailer CD-Wow must pay £41m to British record companies after breaking a deal to stop selling illegally imported cheap albums in the UK. CD-Wow were selling albums for as low as £6.99, which is roughly half the RRP.

What I found disappointing about the story, was what I consider to be the complete tosh coming from the UK music industry in an attempt to justify their actions, including quotes from the BPI’s chief executive, Geoff Taylor, that the company had undermined “the legitimate businesses of UK retailers and record companies”, and Kim Bayley from the Entertainment Retailers’ Association (Era), which represents companies like HMV, Fopp and Amazon, also welcoming the ruling stating that:

“It is vital that all retailers compete on a level playing field. Illegal imports threaten that level playing field and threaten British jobs.”

Basically, what they are saying that it is ok for companies to artificially keep music prices high, and that anyone who finds a way to offer a cheaper price to consumers will be put out of business.

I watched one of the best shows I have seen for a long time on TV last night, about how entrepreneurs from the UK were taking advantage of the ‘World’s Factory’, China, to reduce the production costs of their goods. If it’s ok for other industries to make use of cheaper products overseas, then why can’t the music industry?

Once again the music industry have demonstrated to me that they are completely out of touch, and don’t care about ensuring that consumers get the best service possible.