Phil’s Diary - [Blog @ http://www.philsdiary.net/]
The RIAA seem to have started another round of “sue your customers”. Which is obviously going to increase your chances of a sale.
At the same time over here, CD Wow has been forced to up it’s prices as the BPI have insisted they must not sell CDs imported from outside the EU. If I understand this correctly, the Music Industry price CDs higher in the EU, because they can get away with it (ie. people still buy them). And likewise they sell them at a lower cost in other countries, because otherwise they won’t sell.
So in order to continue making as much money as they can out of the EU and having a nice markup there, they are blocking any importers of cheaper CDs from elsewhere (where they are then sold in the EU cheaper than genuine EU CDs).
So another move by the music industry to milk as much as they can from their customers, who they’re also suing.
All great news for the public.
Posted by Phil on January 22, 2004 07:23 AM | Categories: Thoughts
It's not only the record labels that sell products at a higher price here than 'out there'. Other industries do the same thing. And they too try to prevent the import of cheaper 'outer-market' products. In most cases the EU doesn't block these imports, so in most cases the producer cannot legally prevent the importing. The only case where the EU actively prevents the imports is when the product is exported first while receiving export-subsidies (like some farming products and pharmacy products).
I see only one logical point for selling at different, higher, prices here. If a shopkeeper in Moscow, takes 1euro profit on every disk he has a good income (not royal but OK). If a shopkeeper in Brussels takes 1euro profit per disk he doesn't have enough to survive.
So of course a CD should cost more in Brussels.
Reality however is clouded.
Like not all disk intended for the Moscow market ever get there but rather are shipped directly to Europe. ...
Posted by: sjon at January 23, 2004 10:28 AM