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States Sue Record Companies For Price Fixing
Logic Bomb writes: "Twenty-eight states filed a federal lawsuit today against the five largest record labels alleging price fixing on compact discs. The Federal Trade Commission has dealt with this before, through an out-of-court settlement that was supposed to fix the problem. A Reuters article provided by Yahoo gives good details."
Why do the CDs of old stuff still cost the same as the ones keeping the marketing staff busy?
Your argument has holes in it.
Oh yeah: "Doom I,II,III, Descent I,II, Diablo I" All $4.95 in the clearance bin. That's 90% off the original sale price for software a few years old. Where's the 90% off an all 80 music?
10 Repeat after me: They're gouging us. Goto 10
I have serious doubts about the artistic effort being among the most significant chunks of the cost of a CD. Typically artists get only a very tiny fraction of what each CD sells for. I'd love to see some real numbers on this. The industry made $15 billion in profit last year. Doesn't sound like they're having a tough time of it to me. There's no way in hell I'm going to take their word for it. I want the full investigation done. They aren't telling us everything, you'd be a fool to believe they are.
It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
Absolutely correct. Why should the record companies have to watch their spending? After all, large parties, extremely pricey advertising and the costs of keeping non-signed bands off the charts are of vital importance.
If the record companies actually had to worry about receiving income, they might start having to satisfy the customer. Satisfying the customer would be a bad thing... Right?
Seriously though, by not having to worry about what bands they pick up is a bad thing. You get artists that are nothing more than advertising tools that the media companies create themselves. Putting a little responsibility into the equation would probably help stop record companies from deciding what they want to sell and instead focus on where the customer base wants to take the market.
Keep in mind that the worst thing that the record companies did to themselves recently was not supporting Hip Hop, that opened the door for a lot of independant publishers and started the move to liberate the music industry.
Lando
/* TODO: Spawn child process, interest child in technology, have child write a new sig */
Nice choice of years. Now try this one, taken from RIAA's own U.S. market data report: between 1990 and 1999 the average cost of a CD rose by 13%. And yet, sales volume continues to grow by 10% annually. Isn't it a shame that piracy is destroying the CD market?
At that time, large department stores and consumer electronics retailers began
selling CD's below cost as a ``loss leader,'' in an effort to get people into the
stores to buy big-ticket items, labels said.
Someone's got to have a really inefficient distribution system if they can't make money off a $18 CD.
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Mod up a post Rob doesn't like and you'll never mod again
...sued Microsoft? What is it with these 28 states? Did all the Attorneys General go to the same law school or something? I don't get it, why would only 28 states sue? Do record and softare companies only operate in these 28 states? If anyone has any enlightenment to spread, I'd much appreciate it...
The government is supposed to protect citizens from force and fraud. Price-fixing is not good capitalism, it is a type of both force and fraud. Price-fixing distorts the market, preventing people from being able to freely negotiate price. Therefore it is a legitimate function of government to prevent price fixing -- along with other acts of collusion and conspiracy -- from happening.
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Napster-to-go says "Fill and refill your compatible MP3 player", which is a lie. It's not MP3. It's WMA with DRM.
Besides, RedHat isn't charging just for the media. They are charging for the customer support you get when you buy the boxed product, as well as a set of printed manuals.
-Vercingetorix
-Vercingetorix
"Necessitas non habet legem." -St. Augustine
Ok, I for one am fully in favor of this lawsuit, but please don't make the mistake of saying that $.30 is all it takes to make a CD. A professional album costs upwards of $100,000 to record. Plus advertisements, plus distribution, plus the amount of money the industry "eats" for all the bands that don't sell. Don't forget for every Spice girls there are 100 bands that get printed, promoted and distributed and never sell crap. CD's should be cheaper, that is for sure, but your argument just doesn't cut it here.
Because business "partners" like Wal-Mart are too powerful for Sony and WB's taste. Mom'n'Pop have to take the prices that the record companies charge; Wal-Mart can tell Sony how much they're willing to pay, and cut off a significant amount of their sales by not accepting a higher price.
The companies shined attention on themselves by going after Napster, and I rather imagine they aren't enjoying the results now.
Don't expect this to be the last lawsuit either - you know that once people smell an easy target, those things multiply.
"The Sage treasures Unity and measures all things by it" - Lao Tzu
An essay describing the history of CD manufacturing and price-gouging can be found at:
http://www.negativland.com/minidis.html
Lots of other information on the record industry, copyright, and intellectual property issues is available on their site.
This comment is quoted verbatim from an RIAA website. The original page can be found here.
;)
Frankly, this is a big load of shit, and doesn't deserve a +2 insightful
Anthony
"I think any time you expose vulnerabilities it's a good thing." -Attorney General Janet Reno
A careful consideration of the facts in the case, as well as the legal precedents set forth beforehand can lead to only one reasonable reaction to this decision by the states:
BWAAAAAHAHAHAAHAHAHAAHAHAHAHA!!
You fucking greedy bastards! We knew it all the time! You have absolutely no moral authority to tell Napster users what to do when you're criminals in your own right! Take a long walk off a short cliff, you RIAA scum!
Wow, that was totally juvenile. But I feel SO much better.
- Rev.One might also argue that the advertising and distribution might not be necessary but for the big name labels and their promotion of crap like the Spice Girls. How many ads have you seen on TV for Johnny Welfare Garage Band? Not to many. You might have seen them in your local pub though - and the RIAA didn't have diddly to do with that.
I can't quote you what a recording session at a studio costs, but I would hazard a guess you can get reasonable work done for less than 100 kilobucks - maybe 25? That's not a justification for record prices as I see them. Especially given most artists only see a few dollars at most - and all those promotions, ads, and radio play are taken off THEIR cut - because that money was an advance from the label. Hole had a pretty good rant about that (linked of some /. article last time we all debated this).
The industry is a crock of shit and screws over a lot of people that care about their music. Don't think otherwise. They're scared shitless the internet is going to take away their "distribution model" aka "gravy train", and all the power to them.
Ever ask yourself why you can't walk into Sam's with a Rio, download a song for $0.50, and walk out?
..don't panic
As far as this case goes I am glad to see it happen. I think that the whole Napster ordeal should have been a clue to the RIAA that they need to lower their prices but it wasn't. Though the record companies might not see it this way, this case is going to help them. If the prices are lower people might not feel the need to pirate. And if you sell more product, even at a lower cost, you can still make more money.
Besides this issue has been huge, Napster versus RIAA is huge. The government has already been made involved by the RIAA and thier actions against Napster, if they don't do something that could stop the madness, then they will have to put up with Napster cases until the end of time. Just be thankful that they are doing something that helps us instead of something that hurts us... like shutting down anything with the name MP3 in it.
Oh joy, yet another US-centric article griping about imagined flaws in the American legal system.
Did it ever occur to you that Slashdot is based in the US and is obviously going to be a little slanted in that direction? This is news that is happening in our "backyard", its important to us.
When I see an article about things going on in France or England or anywhere else in the world, I look at it as an opportunity to learn a little about the problems facing the people and the country. I don't make an annoying post about how much coverage that country has been getting lately.
Furthermore did it ever occur to you that all legal systems are flawed and that only through critical discussion can those flaws be found. Its much more productive to discuss the problem then to whine about it.
Price fixing is normal in other countries, and, believe it or not, none of them have been taken over by massiv evil corporationsy et.
Well now that's settled we'd might as well start homogenizing the world. What's good for one country must be good for everyone.
Come on! There are a lot of things in this world that are completely normal in one country, but are completely alien to others. Some of us call it culture, and some of us even respect other people's culture.
Whether or not Price Fixing is normal in Japan is irrelevant. In the US its illegal, and as long as its illegal we as citizens and consumers have a right to ask that the law be upheld. We aren't always listened too, but it certainly is nice when we are.
For example, many sectors of Japan's economy are controlled by huge monopolies (yes, including the record companies), and people the world over look up to Japan's amazing economic success.
Some people look up to Microsoft too. Some people thought what Adolf Hitler did with Germany in the Pre-World War II days was something to look up to. He even got Time's "Man of the Year". You know what though? The end doesn't justify the means.
It's only when the government tried to deregulate the economy that it crashed.
Isn't oversimplification grand. I suppose that the Boston Tea Party was the only cause of the American Revolution. That the invasion of Poland was the only reason World War II got under way.
Price fixing is not the end of the world.
No it isn't, but it is illegal.
Sure, it might mean higher prices for consumers,
Which is precisely why it is illegal.
but it doesn't mean that there's some huge illuminati-like conspiracy out there trying to "get" consumers.
Damn, did I walk into a Katz article by mistake..
So you have to pay more for a crappy CD. Who cares? Price fixing happens -- get over it!
Another brilliant statement.
Cop: "I'm sorry Mrs. Smith, but murder happens, you'll just have to find another husband and get over it."
"The words of the prophets are written on the Slashdot walls."