CD-WOW/BPI settle out of court - higher music prices for consumers
On-line music retailer, CD-WOW have settled out of court with the British Phonographic Industry (BPI) in a long-running battle focussing on the companies practice of importing titles for sale within the UK at knock-down prices.
The agreement that both parties have arrived at will see CD-WOW adding a £2 premium on most titles in their catalogue. Pre-release are already affected with most now at a £9.99 price point. However, whether or not the other CD-WOW sites (in particular CD-WOW.com.hk) will also see a price increase is unclear - certainly, at the moment it seems that their prices are unaffected with most titles coming in at around HK$106 (less than £7.50).
The full press release is as follows:
The UK record companies’ trade association the British Phonographic Industry Ltd (BPI) and on line retailer CD WOW! are pleased to announce that they have settled the case against CD WOW! just two weeks before the case was due in court.
The record industry claimed that CD WOW! was obtaining sound recordings from outside Europe and selling them to UK and Irish consumers. As a result of the settlement CD WOW! has agreed that it will not sell CDs that have been first placed on the market outside Europe to UK and Irish customers. It will only sell CDs that have first been placed on the European market to UK and Irish customers. All other details of the settlement are confidential.
BPI chairman Peter Jamieson says, “I am delighted that we have been able to resolve this case on agreed terms without the need for a trial.”
CD WOW! director Philip Robinson says, “This has been a long drawn out affair which we are pleased to have resolved.”