CD-Wow Fined £41m And Told To Stop Selling Cheap CDs
Everton | May 30, 2007 | Comments 10
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.
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Filed Under: Internet News • MP3 & Video
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- CD-Wow to pay £41m to British record companies
- CD-Wow to pay £41m to British record companies - Ken’sTechnology Blog
News like that can really p*** me off. I amazes me how much the music industry does to keep itself unpopular.
China being the World’s factory is another story, that I won’t comment on today ;)
I’m so glad that I have iTunes as it’s made me finally realise I don’t have to buy any more music, as I have 18k tracks in my collection (and I haven’t even started importing my Vinyl yet-that’s a summer project), where the majority haven’t been listened to more than a handful of times.
I’m trying to get more value out of what I’ve got and I probably only buy around 5-10 albums a year now.
But we don’t compete on a level playing field anyway just look at the “UK” retailers that are based in Jersey to avoid VAT.
This is typical. Every company is propagating globalization but as soon as the consumer is also using the benefits of it they cry out loud and pressure politicians to create laws that forbid imports for example.
This move will only serve to increase piracy, where every sale made by CD-Wow was actively decreasing piracy.
The laws around parallel importing seem to be archaic and surely are used purely as method of price fixing in this modern age of the internet!
no wonder.I just know that this is likely to increase more piracy.
at least the companies get some money unlike piracy where they dont get a pennie.
Sounds a lot like the prescription drug companies here in the states. We can get medications from Canada and Mexico imported for a tiny fraction of the cost that the companies can get away with charging here.
But then they lobby the government with scare tactics saying that we can’t be sure of the safety of drugs produced outside of the country (when in some cases their manufacturing standards are higher than our own).
It’s all in a day of business, eh? ;)
I think sites like CD-wow highlight that the costs of producing/displaying/selling a CD really aren’t as high as the price tag set by the UK record companies (I won’t even go on about DVD and Game prices which are an even worse rip off) so I am very sorry to read about the news. What was the judging panel thinking?
I quote from the ‘BPI Lawyer’
HUH?!
Pretty sad day when the courts are blind to the truly unfair practices.
What I find funny is they are trying to position this move as in the interests of the consumer!!!
THAT’S just plain silly. DUH.