CD Arbitrage Slapped Down In The UK

from the higher-prices-for-everyone! dept

Because, apparently, fair market values for CDs are just too inexpensive for UK and Irish customers, the recording industry in the UK has slapped down an online company that dared to sell cheaper CDs they ordered from overseas. This is part of the same investigation of Amazon we mentioned a couple of weeks ago - though Amazon still hasn't caved in on the issue. Once again, I don't see how this sort of protectionist policy can stand. The company was simply ordering legal CDs at their fair market value and reselling them elsewhere. That's just good business. However, the UK recording industry wants to keep CD prices artificially high and therefore drive their customers to look for other alternatives (file sharing, ordering their own CDs from overseas, etc.). This does nothing to help the consumer at all.

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    Derek Lomas, Jan 21st, 2004 @ 10:35am

    reconsider this one

    We must stringently prevent parallel trades like this, so as to protect regional pricing. Otherwise, music companies won't be able to sell music in low income areas for far less than high income areas, resulting in massive, organized crime controlled piracy. If you don't prevent parallel trades, then music has to cost the same high price everywhere. Doesn't it make sense that music sells for far less in Brazil, China, or Malaysia than the US or UK?

    reply to this | link to this | view in thread ]

  2. icon
    Mike (profile), Jan 21st, 2004 @ 10:39am

    Re: reconsider this one

    Why does that make sense? If they're getting the same product, why should they pay different amounts?

    reply to this | link to this | view in thread ]

  3. identicon
    Adrian Anders, Jan 21st, 2004 @ 2:05pm

    Re: reconsider this one

    Of course, CDs could just be sold for the same LOW price everywhere. It's the record companies which are using their massive market control to drive the price of music up. They want piracy to go away? Then they should stop ripping their customers off!

    reply to this | link to this | view in thread ]

  4. identicon
    LittleW0lf, Jan 21st, 2004 @ 11:01pm

    Re: reconsider this one

    Otherwise, music companies won't be able to sell music in low income areas for far less than high income areas, resulting in massive, organized crime controlled piracy.

    Most people in low income areas are far more concerned about food, clothing, and shelter then the cost of Britney's latest CD.

    Organized crime exists in piracy because there is a profit to be made. The cost of developing a pirated CD is almost 1000% less than the cost of buying a legitimate one. Controlling the cost of CDs in low income areas while keeping the price artificially high in other areas only moves the contraband from low income areas to high income areas. Organized crime will produce the contraband in low income areas for distribution in high income areas.

    If the cost of the CD was a little more reasonable everywhere, and the product was worth the cost of the CD, then people would much rather purchase the legitimate CD then purchase a knock-off or borrow and copy. This is pretty much common sense, but the RIAA doesn't believe in common sense, and would rather call their customers thiefs and pirates, and sue 12 year old girls and 80 year old grandmothers than actually give their customers a product they want at the price they believe is reasonable.

    Until they learn this...everything they do along these lines are viewed as another attack on their customers in the name of their insatiable greed.

    reply to this | link to this | view in thread ]

  5. identicon
    Anonymous Coward, Jan 22nd, 2004 @ 2:01am

    What if I'm not in the UK or Ireland?

    I'm a CD Wow customer in Finland (where I already pay a levy on blank CDs to cover the fact that obviously they're all used for copying...) Now, because the BPI has a go at CD Wow, I end up paying 2 more for the CDs I buy. CD Wow used to charge me 9 for a product that costs 14 here. (I'll wait a week for delivery for that much saving!) Which part of this is actually encouraging me to go and buy more music and support their new artists?! When will they learn...

    reply to this | link to this | view in thread ]

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