US Court Brings Back Price Fixing Lawsuit Against Major Record Labels
from the all-priced-the-same? dept
For many years, we’ve wondered why the major labels haven’t gotten in trouble for what appears to be clear price fixing — having all of the major labels band together to both demand identical wholesale pricing and attempt to dictate retail pricing by partners as well. There have been various investigations by both local and federal officials, along with a few lawsuits — but nothing has really gone very far. One lawsuit was tossed out by the district court back in 2008, but in a surprising move, the 2nd circuit appeals court has revived the lawsuit, claiming that the evidence is “sufficient to plausibly suggest” price fixing by the major labels with regards to digital music. So now it goes back to the lower court. I still doubt this will really have much of an impact, but it’s nice to see some recognition of what’s seemed pretty obvious for quite some time.
Filed Under: antitrust, price fixing, record labels
Companies: emi, sony music, time warner, universal music, vivendi, warner music group
Comments on “US Court Brings Back Price Fixing Lawsuit Against Major Record Labels”
Perspective
Its only price fixing if you call it that. See what they are actually doing is price suggesting. They suggest the price music should be and those who agree get the music. Its really just based on perspective.
/sarcasm
Price Fixing?
Is it really price fixing? I think they all just happened to pick the same price.
Psssh
More like ‘Price Breaking’ if you ask me…
I thought every song ever made was worth $1.29 each. Have I been wrong?
Re: Re:
on eMusic, some Warner songs are being sold for $0.40
Like the NFL ...
Maybe the record labels are just like the NFL … just one organization.
My plan for for the survival of the Labels
If I were CEO of, say, WMG, I’d immediately commence with staff cuts, probably drastic ones. The new digital millennium doesn’t need a stable of entrenched lawyers and financial types that require the old business model.
Then, I’d hire a group of Gen-Y’ers to sit down all together in a big conference room, throw candy, cola and condoms in the room with ’em, an internet connection, laptops, pillows, blankets, paper and pens, and have them write down any and all marketing ideas and business models (I’d explain what a business model is, or at least give ’em an example) and have them toss those in a locked box, and then lock the room.
At the and of two weeks I’d send them on their way with a fat check, and look at the results. Put the top three in place and then as they fizzle out reach in and grab the next. And I wouldn’t look back.
Re: My plan for for the survival of the Labels
Companies have tried this. It was called the dot-com boom.
Price fixing?
Record labels price fixing? Well, DUH! So are a lot of other things price fixed. DVDs, ya think?