Industry Price Fixing- I told you CDs cost too much!

[MattC]

Just thought I'd pass along the news (taken from [i]Jam Rag[/i] , Nov 2002: "Last month, Reuters reported that the world's 5 largest music companies and the three largest music retailers have settled a CD price fixing case, and will pay $67.4 million in cash to "compensate comsumers who overpaid for CDs" and another $75.5 mission to "public entities and nonprofit orginizations." The class action lawsuit was brought by most U.S. states, targeting an industry practice known as "minimum advertised pricing" (MAP), where labels subsidized advertising for retailers who agreed not to sell CDs below a a certain price. Those named in the lawsuit include Vivendi Universal's Universal Music Group, Sony Music, BMG Music Group, Warner Music, and EMI, along with Musicland, Transworld Entertainment and Tower Records, who agreed to drop the practice as part of the settlement. Trans World owns the FYE and Coconuts music chains. None admitted wrongdoing." Jam Rag is a Detroit-based local music newspaper. Jotown- I know you read it.

[jpmiii]

The industry has become an endless source of wonderment and amusement for me. I always get a kick out of "They admit no wrongdoing".

[WooF WooF]

nice try wewus. we know its you dont let the REAL taliban see this ;)

[D_dup3]

Anyone with halfway decent info has always known they're overpriced (cost of [i]physical[/i] production is less than cost of vinyl records)...but it's interesting that the price has risen only recently, after 20+ years.

[RaGe]

There are still tons and tons of $17.99-$19.99 CDs at the FYE near me, and they've been collecting dust for years!

[Duhduh]

[quote]Originally posted by matt C: [b]"Last month, Reuters reported that the world's 5 largest music companies and the three largest music retailers have settled a CD price fixing case, and will pay $67.4 million in cash to "compensate comsumers who overpaid for CDs" and another $75.5 mission to "public entities and nonprofit orginizations." [/b][/quote]Ya know what really ironic...After paying all that money out, they're gonna have to raise their prices to cover the suit costs.

[patrick_dont_fret]

True dat, duhduh. That's exactly what's going to happen. Of course, it will happen slowly as to not make a scene. But in 5 or 6 days they'll be back in the $20 price range. I got a 4 CD live set from Phish for $35, though. Minimal packaging, and a band that doesn't care about the money all helps.

[Super 8]

[quote]Originally posted by Duhduh: [b]Ya know what really ironic...After paying all that money out, they're gonna have to raise their prices to cover the suit costs.[/b][/quote]Oh yeah, that's for sure!!! They'll make a profit on this, you watch! Maybe they'll have to dump some bands from the roster as well. And let's not forget MP3's! Ya know, if MP3's weren't putting such a dent in the market, the record companies wouldn't have to charge so much to recoup all of their losses... Now you go to your room and you think about that... :cry: Yes, they're almost as shady as the telecomunications industry!