CD-WOW fined for selling illegally cheap CD's!

[Si Hunt]

I thought this might be of interest to PS-ers!

Online retailer CD-Wow must pay 41m to British record companies after breaking a deal to stop selling illegally imported cheap albums in the UK.
The High Court in London ruled in March that the site's owners, Music Trading Online, were "in substantial breach" of a 2004 agreement to stop importing CDs.

It has now ordered Hong Kong-based CD-Wow to pay 37m plus interest to the British Phonographic Industry (BPI).

CD-Wow says it will still sell cheap CDs and may appeal against the ruling.

Full story on BBC News

Si.

[Pip Madeley]

I'll still shop with CD-WOW - despite their limited catalogue, they usually have great prices & always offer lots of discounts/vouchers.

[Captain Tancredi]

I haven't bought anything from them in months, but even then I was surprised when the CD arrived that the inlay was marked "not for sale in the EU"- as I understand it, the problem is that they resell CDs bought in the East Asian market where they're priced according to what locals can pay. It's probably a sign of how uncontrollable the global marketplace can be- if they're based in Hong Kong, there's not going to be a great deal that our authorities can do about it even if they freeze their UK assets.

[WhiteCrow]

as I understand it, the problem is that they resell CDs bought in the East Asian market where they're priced according to what locals can pay.

And another example of how we're kind of fleeced in this country every time we buy something manufactured.

I remember a record company exec on some talk show back in the 80s being quite smug about how CDs only cost 50p more to produce than tapes, but sold for double.

I know they say home taping is killing music, but have you heard the shyte they play on Radio One recently?

[Si Hunt]

I don't think that's strictly fair Mr White Crow. We arn't "fleeced" for CD's, I don't think getting a new fourteen track album for under 7 is especially expensive when you consider the time and cost of making it - that's about the price of four chicken breasts or a quarter of a tank of petrol.

CD's are a lot cheaper than tapes - twenty years ago, a tape album would set you back between 7 and 10 in the high street, which is about the same as a new CD would cost you in the supermarket today - which is more expensive when you consider inflation and that CD is a better, more technologically advanced product.

Also I don't really know what the music they play on Radio 1 has to do with it! Listen to a better station if you don't like it!

Si.

[WhiteCrow]

I don't think that's strictly fair Mr White Crow. We arn't "fleeced" for CD's

Okay the new Kaisar Chiefs album (chosen at random).

In the UK, 8.99

http://www.amazon.co.uk/Yours-Truly-...0479503&sr=1-1

In the US, $7.99

http://www.amazon.com/Yours-Truly-An...0479473&sr=1-2

And that's before you start factoring in the higher value of the pound to the dollar.

I also remember it not being too long ago you payed for a CD and got blessed little change from 15. CD's have gotten cheaper of late, but I can't feel anything but cynicism about why.

[Si Hunt]

Well you can't complain they are too expensive on one hand, and then that they have gotton cheaper on the other!

Si.

[Alex]

My gripe is that too much money goes to the label, and not enough to the band. I had a friend a couple of years ago who told me how he had been in a band in the mid-nineties who were signed for half a million pounds. But out of that they had to pay for everything (recording costs, videos, touring etc) and by time they released the album they were broke, whilst as per usual the evil corporate record label bosses were rolling around in money, snorting cocaine off of 20 blonde whores arses whilst shooting imprisoned homeless people.*




*Please note: Some exaggeration may have taken place during this sentence.

[Captain Tancredi]

I think I remember somebody saying a while ago that the record companies' business model is based on losing money or breaking even on 9 acts out of 10 while looking for the tenth to become the latest big thing. Plus I suspect we also pay a lot of the start-up costs to the labels of developing a band for the big time because a band won't be marketed abroad if it hasn't broken out in its domestic market.

Then again, in this country we have a live music scene which constantly brings a variety of talent through for the record companies to pluck off, add a few finishing touches and sell as their own creation. Again, CD prices are inflated by the phenomenon of "must have the latest"- look at the price of an album six months after it comes out and it'll almost certainly have fallen to what it was selling at online to begin with.

[Si Hunt]

On the other side of the coin, it costs a hell of a lot of money to launch a new act. There's paying living costs for them, rehearsal time, studio time, equipment, promotional gigs, I remember reading an article in Q not long ago saying it could cost half a million or something to launch an act with any chance of success, and if they tank it's just money gone. The trouble is, it's all or nothing. It's no good half-promoting a new band, you have to fork out to have them EVERYWHERE and that costs mega bucks.

Si.

[Captain Tancredi]

Out of curiosity, how are they supposed to pay the fine if their bank accounts and assets have been frozen?

[Perry Vale]

IMO, CD-WOW got exactly what they deserved. They'd been caught before, and promised not to do it again, so only have themselves to blame. And using the "we're doing it for the consumer" line is frankly bollox, imho.