M
mollser
Guest
Looks like CD wow have lost.
Question - I know its early days yet, but I wonder will this affect purchasing off the hk website? They'll increase their prices on the uk and ire websites, but what about the HK one? Will they still allow us to purchase off it?? Anyway, get your purchases in before Sunday!
[broken link removed]
CD Wow forced to stop parallel importing
By Richard Milne
Published: January 21 2004 12:47 | Last Updated: January 21 2004 12:47
UK consumers face the prospect of paying more for CDs bought on the internet after the music industry forced a leading online retailer to stop parallel importing.
Hong Kong-based CD Wow has agreed to stop sourcing CDs from outside the European Economic Area (EEA), in particular from Asia, in a move that will add £2 to its retail price.
The British Phonographic Industry said on Wednesday that it had settled its legal action - due for court early next month - with CD Wow, one of the internet's biggest success stories in the UK with a turnover last year estimated at £100m ($181.7m).
"It is hugely disappointing," said Philip Robinson, director of CD Wow. "It is very much the consumer who loses out."
He said that prices on cdwow.co.uk would rise from £8.99 to £10.99 from Sunday and that impact margins would take a substantial hit.
Music industry insiders said they were delighted with the result. "It is not the consumer that will suffer, just CD Wow's profit margins. They made a lot of money out of cheap CDs," one insider said.
The settlement represents the music industry's first success in its battle against parallel imports, where genuine CDs are purchased in one country before being sold in another without the copyright owner's consent.
The BPI is also investigating amazon.com, the world's largest online retailer, and has issued legal proceedings against play.com, a Jersey-based company, over parallel imports.
The decision only affects CD Wow's business in the UK and Ireland but it faces lawsuits in other countries, including Germany, from the record industry.
"Yes, it's a blow. But it is not a life-threatening blow," he said, adding that the CDs, which now will all be bought within the EEA, would still be shipped from Hong Kong.
Consumer groups reacted with dismay to the news saying that the music industry had chosen the wrong strategy to increase sales.
CD sales rose by 7.6 per cent last year, defying a downward trend globally, but critics say that this was due to the lower prices of online retailers and supermarkets.
"It's terrible news," said Phil Evans, principal policy adviser at the Consumers' Association. "We are back to Fortress UK and Ireland.
"It's just a travesty that an industry is allowed to segment the global market and charge higher prices in some parts than others. What is the point of global free trade?"
The BPI admitted that the CDs imported by CD Wow were genuine products bought from subsidiaries of UK record companies but argued that they had been sold without the consent of the companies.
The BPI released a short statement on the settlement. Peter Jamieson, BPI chairman, said: "I am delighted that we have been able to resolve this case on agreed terms without the need for a trial."
The BPI declined to comment further.
Question - I know its early days yet, but I wonder will this affect purchasing off the hk website? They'll increase their prices on the uk and ire websites, but what about the HK one? Will they still allow us to purchase off it?? Anyway, get your purchases in before Sunday!
[broken link removed]
CD Wow forced to stop parallel importing
By Richard Milne
Published: January 21 2004 12:47 | Last Updated: January 21 2004 12:47
UK consumers face the prospect of paying more for CDs bought on the internet after the music industry forced a leading online retailer to stop parallel importing.
Hong Kong-based CD Wow has agreed to stop sourcing CDs from outside the European Economic Area (EEA), in particular from Asia, in a move that will add £2 to its retail price.
The British Phonographic Industry said on Wednesday that it had settled its legal action - due for court early next month - with CD Wow, one of the internet's biggest success stories in the UK with a turnover last year estimated at £100m ($181.7m).
"It is hugely disappointing," said Philip Robinson, director of CD Wow. "It is very much the consumer who loses out."
He said that prices on cdwow.co.uk would rise from £8.99 to £10.99 from Sunday and that impact margins would take a substantial hit.
Music industry insiders said they were delighted with the result. "It is not the consumer that will suffer, just CD Wow's profit margins. They made a lot of money out of cheap CDs," one insider said.
The settlement represents the music industry's first success in its battle against parallel imports, where genuine CDs are purchased in one country before being sold in another without the copyright owner's consent.
The BPI is also investigating amazon.com, the world's largest online retailer, and has issued legal proceedings against play.com, a Jersey-based company, over parallel imports.
The decision only affects CD Wow's business in the UK and Ireland but it faces lawsuits in other countries, including Germany, from the record industry.
"Yes, it's a blow. But it is not a life-threatening blow," he said, adding that the CDs, which now will all be bought within the EEA, would still be shipped from Hong Kong.
Consumer groups reacted with dismay to the news saying that the music industry had chosen the wrong strategy to increase sales.
CD sales rose by 7.6 per cent last year, defying a downward trend globally, but critics say that this was due to the lower prices of online retailers and supermarkets.
"It's terrible news," said Phil Evans, principal policy adviser at the Consumers' Association. "We are back to Fortress UK and Ireland.
"It's just a travesty that an industry is allowed to segment the global market and charge higher prices in some parts than others. What is the point of global free trade?"
The BPI admitted that the CDs imported by CD Wow were genuine products bought from subsidiaries of UK record companies but argued that they had been sold without the consent of the companies.
The BPI released a short statement on the settlement. Peter Jamieson, BPI chairman, said: "I am delighted that we have been able to resolve this case on agreed terms without the need for a trial."
The BPI declined to comment further.
