Recording Industry Thinks The UK Doesn't Understand Exchange Rates

from the not-so-smart dept

We’ve already had stories about how the recording industry is looking for any possible way to raise prices on digital downloads (showing just how little they understand the concept of an emerging market), and now we find out that the standard $1 price is really more for marketing reasons. Now that Napster has launched in the UK, they seem to think that it’s a good idea to use the “1 standard unit of currency” as the main price – probably because it looks better in advertisements. So, in the US, a track is $1. In the UK it’s £1. Now, while the recording industry couldn’t be bothered, most users understand exchange rates, and realize that £1 = ~ $1.77 (with some fluctuations). In other words, for the sake of being able to use the “1 standard unit of currency” pricing, the recording industry gets to nearly double the price in the UK. This doesn’t seem likely to encourage much adoption – but may encourage plenty of resentment. Of course, by this point, it appears the recording industry thrives on resentment.

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Comments on “Recording Industry Thinks The UK Doesn't Understand Exchange Rates”

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August Jackson (user link) says:

Re: Re: No Subject Given

This is actually more likely than you might imagine. While I have not been shopping for CDs in the UK for some time now, a few years ago it amazed me that CDs cost more in nominal pounds in the UK than dollars here in the US. For example, a CD that might cost. $12.99 at Best Buy here in the US was ?15.99 at the Virgin Megastore in London. So, it might not be just simple stupidity but a continuation of what my British friends call “Rip off Britain.”

Ryan says:

Re: This just in...

What the RIAA have proved is that they are totally unwilling to be realistic, they liked those big fat profits and they’re not going to change. Like it or Lump it! Of course consumers know they don’t have to Like it or Lump it … let’s watch an outdated business model die … anyone got a BBQ and a few beers ready? Oh by the way has anyone noticed that these lawsuits are a US only thing? Hence in the UK we can download to our hearts content!

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