The news this week that Amazon.com may be investigated by the British Phonographic Industry for shipping cheaper overseas CDs to British customers is just the latest example of the music and film industry's failure to adapt to the changes that the internet and new technology has brought about.
The BPI is already investigating CD Wow and Play.com and its attempt to now finger Amazon for supposedly undercutting exorbitant UK prices with cheap imports smacks just a little of desperation.
The same is happening in the US with the RIAA's long-running battle with the file-sharing community. And while we don't condone or support the abuse of any artist's copyright, the fact is file-sharing has become so popular because of both the high prices charged for CDs with two singles and 10 filler tracks and the industry's failure to come up with it's own viable model for selling downloads online to consumers.
The beauty of the internet for consumers over here in the UK is that they can now scour the web for cheaper and cheaper versions of a CD by their favourite artist without having to go into HMV and pay £15. What is the BPI's next move? To start suing consumers who buy these grey imports?
Another example of pricing differences this week has forced Apple to reconsider its UK pricing for the new mini-iPod after it was revealed the US version would retail for almost £40 less at £160. Similar price discrepancies are seen in other areas too.
There is a balance that has to be struck between squeezing prices so much that it hits the quality of the product - and leaves original content creators with little incentive - and making prices more competitive but it is clear that most people in the UK feel they pay too much for CDs and DVDs compared to the rest of the world.
One silicon.com reader echoed the sentiments of many others with the comment: "Maybe we need an EU investigation of pricing of CDs and DVDs, and why exactly are they so much cheaper elsewhere."
The message for the industry is clear. Forget frivolous and pointless litigation and focus instead on bringing prices down and producing better quality offerings by taking advantage of the internet and technology, not blaming it.
Comments
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1. anonymous
I think the "grey" import row has the intention to create a president for internet downloads in the future, and the main issue it is trying to address is copywrite.
If the record companies can re-affirm now that it is illigal to transfer ownership from one territory (eg Asia) to another (Europe) for distributed CDs, it will be fairly easy for them to argue that downloads (paid for) are just another form of distribution) as vinal and tapes were before.
As the market for paid-for down load services, consumers from around the world will scout for the cheapest service (which may be in India or China). At the moment there is nothing stopping these services selling to UK consumers as long as they are legally licensed.
If the record companies have the CD selling president they will be able to argue that these companies can only sell to individuals within their region.
2. David Fletcher
What we need to stop overpricing of CDs is consumer action.
Record shops NEED to SELL CDs, but I don't NEED to BUY them. They are nothing more than an unnecessary luxury.
So if the record buying public simply stopped buying them on a specified date, after a few weeks the prices would drop, out of desperation to get sales moving again.
Could it happen? I doubt it, but it would be interesting to try.
3. Richard Peters
I am constantly amused by the attempts of the music and film industry to stop cheap imports. They are fully aware of their increased sales of European products to certain 'off-shore' suppliers and very happily accept the profit. Why bleat about it when they lawfully sell them on to other sources? What else did they expect to happen!
In the case of DVDs it is even more obvious, why would Asia would want to buy thousands of R2 copies?
It is about time the whole industry woke up to the idea that their 'protective measures' are an obvious indication of the prevailing greed culture and can only reduce the buying public's perception of their motives.
4. anonymous
A vinyl lp held arround 40 mins of music, & most bands could be relied on to produce enough good material to fill that time. Cds hold arround 70-odd minutes of music & bands struggle to fill them, resorting to, well, filler - no wonder the quality has fallen. Record companies might consider not insisting that artists use every last byte of data on a disc & who knows, the quality might improve & more people might want to buy it.
5. anonymous
Boot on the other foot?
Pitiful actions by a very wealthy sector. Musicians are talented, but not to the lelvel that commands the multi-millions earner and the pound of flesh taken by the music bosses.
Stuff 'em! They're just gutted that their dead cert. turned into a 3 legged donkey.
6. matt purser
This makes me die.
This whole illegal downloading of music thing is hilarious.
Anyone remember the 'Taping music off the radio' scandal of the 80's that was meant to be the death knell of the music industry as we know it.
Well those music industry billionairres are sure suffering now aren't they...<laugh>
/sarcasm off
7. matt purser
This makes me die.
This whole illegal downloading of music thing is hilarious.
Anyone remember the 'Taping music off the radio' scandal of the 80's that was meant to be the death knell of the music industry as we know it.
Well those music industry billionairres are sure suffering now aren't they...<laugh>
/sarcasm off
8. anonymous
I have been buying CDs and DVDs from numerous overeas websites for some time.
Why do I do this?
I object to paying £15 when I can pay $10 for the same thing. However, I don't think the media barons are losing any money because of me as I tend to buy far more from these sites than I would by browsing through shelves in HMV or Virgin.
The music industry needs to sit back and think about how it should sell its products in a GLOBAL market and stop trying to penalise companies like Amazon who clearly understand this market better than they do.
9. Peter Searle
Is this desperation or old fashioned greed ? I assume that the industry is not charitably giving its CD's away when they sell them to CD Wow and their like. I also assume that, as a responsible industry, the record companies will be passing on the appropriate fees IN FULL to their artists ? If HMV wish to compete then they can buy the CD's for the same prices - or less - and then sell them on-line. If this undermines their high street shops, then shut the shops. The internet offers a wider choice, better prices and the chance to sample before you buy. Come on HMV, serve your customers, keep the ones you have and make new ones. It is called competition.
10. phil shears
All power to the consumer..whats the Net for anyway ?
Stuff the record companies...
They have exploited the British consumers for long enough.
11. phil shears
All power to the consumer..whats the Net for anyway ?
Stuff the record companies...
They have exploited the British consumers for long enough.
12. Dave Barnett
Charge a price that reflects the cost of the product and not "what the market will bear", and I would be much happier to go out and buy an original UK item. I don't see why I should be robbed blind for the privelege of shopping at HMV and the like when I can save a lot of time and effort buying from Hong Kong for example. If they are all originals and not pirates the record companies are still making money anyway surely?
13. Joe W
RE: What we need to stop overpricing of CDs is consumer action.
There was a certain group of (will remain unnamed) forums that had exactly this idea....
If you take into account:
A) Recession.
B) P2P.
C) Overpricing.
D) People refusing to buy from RIAA labels.
E) Protesting users (see D).
Well then you'de see why the RIAA is getting desperate as far as sales go, in the US. LOL
14. anonymous
While everyone is discussing the ripoff on CDs I did a comparison online of digital cameras which are identical in UK and USA. On average they are 40% cheaper before tax in USA.
15. anonymous
The Music Industry needs to recognise that the market is changing and adapt to it quickly. Otherwise they will go the same way that the Coal Miners and other Industries in the UK have gone.
Any organisation which neglects to research it's market correctly is doomed to failure. The music Industry is clearly guilty of this.
There is money to be made from lower cost CD's with higher levels of sales. Also, the consumer now expects more quality, more features at less cost from every other product. Why should the music industry be any different?
In short: The music Industry must stop whining, start cutting prices to Internet levels.
16. anonymous
I wish someone could explain to me why in a global economy and a free market environment that there is still such an outdated concept as 'grey imports'?
It is clear that many products are still being sold at what the local market will bear, rather than the actual value. $ to £ equivalence is common, not only from Apple, so it is NOT about developed v developing world economies.
17. anonymous
I wish someone could explain to me why in a global economy and a free market environment that there is still such an outdated concept as 'grey imports'?
It is clear that many products are still being sold at what the local market will bear, rather than the actual value. $ to £ equivalence is common, not only from Apple, so it is NOT about developed v developing world economies.
18. Neill Tinlin
Software is even worse.
Adobe for instance charge the equivalent of nearly £100 difference for Photoshop CS on their UK and US websites. With some of their other software the difference is even worse.
19. anonymous
I must admit to downloading some MP3's. But I also buy originals from CD-Wow. If price goes up I won't and the 'music industry' will have lost even more money.
I wonder if the record companies do actually earn less for 'grey' imports or whether they are protecting the high street retailers via the backdoor.
20. Pete
So the BPI spokesperson says that uit is not about money, but sourcing the discs " legally "
So are these counterfeits/fakes/pirate copies or just the true wholesale price that the record companies are happy to take from customers in Asia ? Buy CD Wow today , tomorrow and every day until we get the same deal as the rest of the world. And if the costs of promoting the artists are so high then the record companies simply need to add £ 0.30 to every disc sold worldwide and I will STILL buy from CD Wow and it will still be cheaper than the UK High Street ANd the rcord companies will make even more money.
Vote with your wallet, support enterprise and keep buying god music
21. anonymous
Ed,
If you think CD/DVD prices are muder in the UK,the poor Aussie consumer gets positively raped.
M.Prendergast.