AfterDawn: News

CD Wow backs down -- no more cheap imports

Online retailer CD Wow has settled with the British Phonographic Institute (BPI) to stop importing cheap Audio CDs from Asia. The company was able to offer cheaper CDs to its customers thanks to price differences between different regions -- CDs cost significantly less in Asia than in Western Europe.

Until now CD Wow has charged £8.99 for CDs, but the prices will be increased by £2. There's little doubt that this will hurt the company's sales quite severely.



In essence music labels are enforcing a policy similar to DVD region coding -- Europeans are willing to pay more for CDs than Asian consumers, so they are charged more. By using restrictive distribution contracts, record labels have managed to keep cheap imports from appearing in stores.

Source: The Register

Written by: Jari Ketola @ 21 Jan 2004 14:37

• Previous article

• RIAA files suits against 532 individuals

• Next article

• Macrovision CDS-300 protection features Windows Media DRM

• 12 comments

• Nephilim

  Aren't there laws in the U.K. against price-fixing? How could this be construed as anything but forced price-fixing?

  21.1.2004 14:43 #1

• andyorbit

  I agree, its a free market. Wont this just encourage people to order online from asia leaving the uk merchants out of pocket as the middle man also.
  
  
  http://www.zen16349.zen.co.uk/marsinfluence.html

  22.1.2004 01:14 #2

• GrayArea

  It would be interesting to hear what tune THE BRITISH PORNOGRAPHIC INSTITUTE would be singing if the situation were reversed (if Asian countries were trying to curtail UK exports).

  22.1.2004 10:34 #3

• Nephilim

  Why club baby seals when these indusry dill-holes would do nicely.
  

  Gigabyte 8INXP, Intel P4HT 3.06
  Mushkin 1024 MB PC2100
  Sapphire 9800 Pro
  Plextor PX-708A/Plextor Premium/LTD-166S
  M-Audio Revolution 7.1
  Browning Hi-Power

  22.1.2004 11:07 #4

• Ghostdog

  That should be illegal, forcing a company to raise prices because they don´t "fit" the market. Unless there was clear evidence that importing could damage the brittish industry or something.

  23.1.2004 03:28 #5

• apalmer66

  Start boycotting the high street shops.Buy from labels direct(all labels have a shop on their website)or even from bands direct cos then they get the money they deserve. The labels and artists must surely still get the same royalties and payments etc no matter where the cds are bought from. Direct action is the only way.Support the labels and artist ONLY! As far as I can see, they are trying to stop p2p downloading and the buying of REASONABLE priced cds by forcing you to pay full price.Surely this can only encourage a backlash of paople flocking to kazaa etc.

  23.1.2004 10:11 #6

• misuel

  Would the same rules apply if you use the CD-Wow Hong Kong site?

  23.1.2004 13:38 #7

• apalmer66

  Maybe, cos the BPI are also targeting Amazon.com(can you believe the audacity of these people!)because they are selling US priced cds to the Uk thus having the same effect.What I would like to know is, if play.com and cdwow are not allowed to sell cds at cheap prices why can you get them at the same cheap price from Tesco supermarket without any hassle!

  24.1.2004 02:24 #8

• muske

  I can only reiterate the points above. This seem like blatant price fixing, which I thought was against the law!
  
  How can these people be guilty of anything less than keeping prices artificially high!
  
  This is a quote following Nintendo being fined for price fixing:-
  
  "Every year, millions of European families spend large amounts of money on video games," Competition Commissioner Mario Monti said.
  
  "They have the right to buy the games and consoles at the lowest price the market can possibly offer.
  
  "We will not tolerate... behaviour intended to keep prices artificially high in the European single market."
  
  Do we not live in Europe?
  
  This is nothing less than disgusting behaviour intended to make those already rich through us muppets that bit richer!
  
  We should do all we can to ensure the BPI suffers for their actions, whatever that may involve!

  24.1.2004 14:28 #9

• Ghostdog

  Why didn´t CD Wow fight this? Aren´t there laws about competition on the market?

  25.1.2004 01:54 #10

• geekboy

  It really is a joke, for years high street stores like HMV and Virgin Megastore have been ripping off the UK public...we get great sites like CD-WOW who pull out all the stops with great products, great prices and perfect customer relations; then the BPI, with pressure from retailers demand they stop!?!
  
  What about my rights? I want 'import' products, plus the BPI really think people who frequently use(d) CD-WOW will now even consider using an overpriced high-street store for their CD products?! NOT A CHANCE!!
  {Que the increase in sales for Play.com and SplashDVD.com}
  
  I just dread the day when they try to clamp down on multi-region DVD imports...I'm gonna go down guns a' blazin when that day comes!!

  26.1.2004 05:53 #11

• riaz

  cd wow did not want to spent the money fighting it out in court. €3 is the amount for cd wow ireland. the director said in an interview "i hope consumer groupes pick up on this one and fight it"
  cd wow could not give a toss. they still get the same profits. there prices are still cheaper.
  Once again the record companys push people to downloading and copying "illegally!!"
  And so the circle of copy fraud is once again complete
  three cheers for the multi nationals.
  hip hip....

  26.1.2004 11:33 #12