Letter: Compact disc prices: facts the select committee overlooked
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sir: It was refreshing to read an article (13 May) that reflected an objective view of the data on CD pricing. It is difficult for the industry to add to the body of available information, when the Select Committee's report, in my opinion, suppressed any evidence that did not support its own polemic. It is also the case that the arguments are complex and do not lend themselves to snappy headlines. Nevertheless, in order to redress the balance, here are the simple arguments we have now been making since the Consumer Association report.
We sell music, not formats. We are no more in the business of manufacturing plastic to sell at a premium than a motion picture company is selling celluloid: it is selling movies.
There are no excessive profits in the industry. A report by Coopers & Lybrand in 1990 revealed an average profit in the British record industry of 5 per cent. A reduction of pounds 2 or pounds 3 in the prices of CDs can only mean either reduced investment or job losses. British record companies have given British consumers the best value in the world in terms of the range of repertoire available in new talent.
If there is to be a Monopolies and Mergers Commission investigation, in spite of the fact that the Office of Fair Trading has already examined and cleared us once, then so be it. At least we will have the benefit of being examined by impartial and intelligent people who understand the concepts of marginal costing and basic economics.
Yours sincerely,
JOHN PRESTON
Chairman
BMG Records
London, SW6
13 May
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments