Post by lysergicacid on Jan 16, 2010 1:23:51 GMT
I know this is an old thread but this is one reason I’ve no sympathy for the record companies. Its about the illegal practice of price fixing cds in the 90s.
www.ftc.gov/opa/2000/05/cdpres.shtm
This particular paragraph just about sums them up. MAP is Minimum Advertised Price
The complaints detail how MAP policies were adopted to squelch discount music retailing. In the early 1990s, many new music retailers, including major consumer electronics stores, started to sell CDs at low prices to gain customers and market share. The more traditional music retailers also lowered their prices to compete. This retail "price war" led to lower CD prices for U.S. consumers as prices for popular CDs fell as low as $9.99. The record companies adopted the MAP policies in 1995-96 to extinguish this "price war," the Commission contends
"The FTC estimates that U.S. consumers may have paid as much as $480 million more than they should have for CDs and other music because of these policies over the last three years. These settlements will eliminate these policies and should help restore much-needed competition to the retail music market, consisting of $15 billion in annual sales. Today's news should be sweet music to the ears of all CD purchasers," said Chairman Robert Pitofsky.
You get that a $9.99 CD in the mid 90's whats that like £6-7. I bought new cds in the 90s usually around the £14-15 mark.
For years now I've just bought 2nd hand or promos, with the occasional new rare item or ones for the future. That way I get what I want without the vat and price fixes
www.ftc.gov/opa/2000/05/cdpres.shtm
This particular paragraph just about sums them up. MAP is Minimum Advertised Price
The complaints detail how MAP policies were adopted to squelch discount music retailing. In the early 1990s, many new music retailers, including major consumer electronics stores, started to sell CDs at low prices to gain customers and market share. The more traditional music retailers also lowered their prices to compete. This retail "price war" led to lower CD prices for U.S. consumers as prices for popular CDs fell as low as $9.99. The record companies adopted the MAP policies in 1995-96 to extinguish this "price war," the Commission contends
"The FTC estimates that U.S. consumers may have paid as much as $480 million more than they should have for CDs and other music because of these policies over the last three years. These settlements will eliminate these policies and should help restore much-needed competition to the retail music market, consisting of $15 billion in annual sales. Today's news should be sweet music to the ears of all CD purchasers," said Chairman Robert Pitofsky.
You get that a $9.99 CD in the mid 90's whats that like £6-7. I bought new cds in the 90s usually around the £14-15 mark.
For years now I've just bought 2nd hand or promos, with the occasional new rare item or ones for the future. That way I get what I want without the vat and price fixes
