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End of cheap online CDs?
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I received this from cd wow regarding paid for pre orders and frozen bank assets
"Hi, Thank you for your email. Please be advised, we have been fighting our case with the BPI since 2001 and business will continue as usual. This latest judgement is being appealled in the UK and the European Courts. They are holding CD WOW responsible for lowering the price of CDs. This is a fact of which we are proud. We wish to reassure you that all your orders are safe and we shall still continue to offer excellent service and best value always to all our customers."0 -
As I understand it artists get virtually nothing from the sale of a CD (http://www.postaudio.co.uk/education/business/cd_breakdown.html suggests only £1.03 per CD cost of £12.99, this is the least amount of profit with the distributors and labels taking nearly 5 times more, and with the VAT man taking almost as much as the artist gets).
The argument the BPI is putting forward is that lowering the sale price will only reduce what the artists get. Something seems wrong with that argument somewhere if artists get virtually nothing anyway. Surely that's just translated as we can't take a cut in profits as we are greedy b*****ds, so lower the sale price and we'll just take the money away from the artists you love. But we don't have to take this laying down with a gun to our head from the BPI. Just download and give them the two fingers.0
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