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Recording Industry Thinks The UK Doesn't Understand Exchange Rates

Overhype

from the not-so-smart dept

Thu, May 20th 2004 10:01am — Mike Masnick
We've already had stories about how the recording industry is looking for any possible way to raise prices on digital downloads (showing just how little they understand the concept of an emerging market), and now we find out that the standard $1 price is really more for marketing reasons. Now that Napster has launched in the UK, they seem to think that it's a good idea to use the "1 standard unit of currency" as the main price - probably because it looks better in advertisements. So, in the US, a track is $1. In the UK it's £1. Now, while the recording industry couldn't be bothered, most users understand exchange rates, and realize that £1 = ~ $1.77 (with some fluctuations). In other words, for the sake of being able to use the "1 standard unit of currency" pricing, the recording industry gets to nearly double the price in the UK. This doesn't seem likely to encourage much adoption - but may encourage plenty of resentment. Of course, by this point, it appears the recording industry thrives on resentment.
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8 Comments

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  • identicon
    NOBODY, 20 May 2004 @ 10:09am

    No Subject Given

    But that's the thing mike.
    They are doing everything they can to make this whole thing fail. They don't want to make any money off of it. If they did, they wouldn't be able to say digital piracy is hurting their income and sue users.

    [ link to this | view in chronology ]

    • identicon
      Beck, 20 May 2004 @ 11:27am

      Re: No Subject Given

      Maybe they're still trying to protect their retail store sales channel.

      [ link to this | view in chronology ]

      • identicon
        August Jackson, 20 May 2004 @ 12:41pm

        Re: No Subject Given

        This is actually more likely than you might imagine. While I have not been shopping for CDs in the UK for some time now, a few years ago it amazed me that CDs cost more in nominal pounds in the UK than dollars here in the US. For example, a CD that might cost. $12.99 at Best Buy here in the US was £15.99 at the Virgin Megastore in London. So, it might not be just simple stupidity but a continuation of what my British friends call "Rip off Britain."

        [ link to this | view in chronology ]

  • identicon
    Oliver Wendell Jones, 20 May 2004 @ 11:30am

    This just in...

    An anonymous RIAA representative decried the whole issue and said, "Hey, our original plan called for a universal unit of currency - 1 Troy Oz. of .999 Gold - so consider yourselves lucky, you lying, thieving bastards, err, I mean customers".

    [ link to this | view in chronology ]

    • identicon
      Ryan, 20 May 2004 @ 3:49pm

      Re: This just in...

      What the RIAA have proved is that they are totally unwilling to be realistic, they liked those big fat profits and they're not going to change. Like it or Lump it! Of course consumers know they don't have to Like it or Lump it ... let's watch an outdated business model die ... anyone got a BBQ and a few beers ready? Oh by the way has anyone noticed that these lawsuits are a US only thing? Hence in the UK we can download to our hearts content!

      [ link to this | view in chronology ]

  • identicon
    Garth, 21 May 2004 @ 7:00am

    No Subject Given

    I live in Canada, and would like to see this methodology applied here as well, since our dollar is worth less than the US. In fact, I'd like to see iTunes Mexico, where all tracks only cost a Peso, or iTunes Japan, where everything cost a Yen. :)

    [ link to this | view in chronology ]

    • identicon
      Anonymous Coward, 21 May 2004 @ 7:29am

      Re: No Subject Given

      The problem with all these posts is you are all willing to continue to do business with the RIAA. Stop nying CD's ant the situation will change. Simple.

      [ link to this | view in chronology ]

      • identicon
        Zorro, 21 May 2004 @ 10:02am

        Re: No Subject Given

        umm... I stopped doing "business" with the RIAA a while ago.

        [ link to this | view in chronology ]


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