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Music Companies Convicted of Price Fixing Again
InspectorPraline writes "Providing more proof that the record industry is indeed a oligopoly, this article at the New York Times reports that two major record companies, Vivendi Universal and Warner Communications, have been convicted of price fixing by the FTC over a recording from 1998 of the Three Tenors. While Warner reached an agreement with the FTC about a year ago, Vivendi continues to deny wrongdoing and will, of course, appeal." The FTC's release is quite informative, describing the entire case.
As the concert approached, the complaint alleged, Warner and PolyGram became concerned that the audio and video products resulting from the Paris concert would not be as original or as commercially appealing as the earlier Three Tenors releases. To reduce competition from these earlier releases, the companies allegedly adopted what they called a "moratorium" agreement. Through this agreement, the complaint alleged, PolyGram would not discount or advertise the 1990 Three Tenors album and video from August 1, 1998 through October 15, 1998 (the "moratorium period"); in return, Warner would not discount or advertise the 1994 Three Tenors album and video during the same interval.
I guess this is price fixing but what about all the CDs that are released. Aren't they all over-priced becuase of all the record companies working together to raise prices?
I've been told that in Japan the record companies have some kind of agreement with the government allowing them to fix prices, which is why Japanese CDs cost $30 and the American imports were about $15 or a little over (this was a few years ago, funny how CD prices have gone _up_ as the technology has gotten cheaper, neh?)
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I thought that one of the things America prided itself on was that it was a perfect example of capitalism in action -- individuals and companies that succeed on their merits and markets where consumers benefit by fair and open competition.
Oh dear, how things are changing.
Now we have a few key players in a few industries (RIAA, MPAA) bribing the government to introduce *state-enforced* controls over markets and competition.
The rights that previously protected US citizens from the excesses and over zealous actions of large corporations are gradually being eroded as things such as "fair use" under copyright law is completely wiped by legislation such as the DMCA.
What's more, it becomes patently obvious that when industries such as the RIAA and MPAA conspire to defeat the principles of capitalism and free-market competition, the government seems interested only in slapping wrists on the one hand while handing them more power (via the DMCA) on the other.
Shouldn't citizens be asking -- why are we allowing big business to buy-off the government?
And, above all else, citizens should remember that governments are elected to SERVE and REPRESENT *all* citizens, not just those with big wallets.
Go talk to your elected representitive and tell him he's not getting your vote unless he shapes up and restores the USA to its former caplitalist glory!
What we need is to support more artists who are on their own label (Ani DiFranco, Christine Lavin, etc.) or who are on independent labels. The artists don't get shafted, and we get music at a better price.
I'd like to see more artists take stands like Tom Petty did. His "Hard Promises" album (back in the LP days) was going to be retailed at $9.98, while he wanted it retailed at $8.98. If it was going to be sold at $9.98, he was going to call it "The $8.98 album". The record company caved, and hence the title "Hard Promises."
DMCA - Chilling free speech since 1998.
Maybe that's what CDBaby is for?