Wow - Music Company Price Inflation!
MonsieurEvil
Join Date: 2002-01-22 Member: 4Members, Retired Developer, NS1 Playtester, Contributor
Join Date: 2002-01-22 Member: 4Members, Retired Developer, NS1 Playtester, Contributor
in Off-Topic
<div class="IPBDescription">who woulda thunk it... -_-</div> (from CNN - <a href='http://www.cnn.com/2003/TECH/ptech/06/16/us.cdsettle.ap/index.html' target='_blank'>http://www.cnn.com/2003/TECH/ptech/06/16/u...e.ap/index.html</a> )
Looks like those darned Music execs have been bad little boys. If anything, this really just scratches the surface, most likely...
<!--QuoteBegin--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td><b>QUOTE</b> </td></tr><tr><td id='QUOTE'><!--QuoteEBegin-->PORTLAND, Maine (AP) -- A judge has approved a settlement agreement in a music antitrust lawsuit that will result in more than 3.5 million consumers receiving nearly $13 each.
Judge D. Brock Hornby issued a 51-page ruling Friday in the case that began in 1996 when attorneys general across the country began investigating whether distributors and retailers had conspired to inflate CD prices.
"This settlement will put cash in the hands of millions of consumers and music CDs in libraries and schools throughout the country, and will ensure that the challenged distributor/retailer practices will not resume," Hornby wrote.
Details still to be decided
The ruling, however, does not stipulate exactly how much consumers will receive or when the checks will be distributed. More than 3.5 million consumers filed claims, now estimated at $12.63 each.
Hornby asked lawyers to present him with a report by the end of the month on how much it will cost to distribute the checks and how much each check will be.
He also deferred ruling on a plan on how millions of CDs will be distributed to the schools and libraries.
The lawsuit, signed by the attorneys general of 43 states and territories and consolidated in Portland in October 2000, accused major record labels and large music retailers facing competition from discounters like Target and Wal-Mart of conspiring to set minimum music prices.
The defendants -- Sony Music Entertainment, EMI Music Distribution, Warner-Elektra-Atlantic Corp., Universal Music Group and Bertelsmann Music Group, and retailers Tower Records, Musicland Stores and Transworld Entertainment -- deny any wrongdoing. Attorneys representing the companies declined to testify in court.
Old settlement disapproved
Of the total settlement, $75.7 million would be distributed in the form of 5.6 million music CDs sent to libraries and schools throughout the nation.
The proposed cash settlement in the case totals $67.3 million, with roughly $44 million to be distributed to the public. The remaining cash will go toward distribution costs and legal fees.
Hornby disapproved a settlement agreement regarding music club sales that would have been just over $1 million in cash and provided 50 percent discounts for club members on one to three new CDs.
Hornby wrote that virtually all the cash would go to attorney fees, leaving little value to club members. He added that music club defendants have not proven that they were part of any pricing conspiracy.
<!--QuoteEnd--></td></tr></table><span class='postcolor'><!--QuoteEEnd-->
Looks like those darned Music execs have been bad little boys. If anything, this really just scratches the surface, most likely...
<!--QuoteBegin--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td><b>QUOTE</b> </td></tr><tr><td id='QUOTE'><!--QuoteEBegin-->PORTLAND, Maine (AP) -- A judge has approved a settlement agreement in a music antitrust lawsuit that will result in more than 3.5 million consumers receiving nearly $13 each.
Judge D. Brock Hornby issued a 51-page ruling Friday in the case that began in 1996 when attorneys general across the country began investigating whether distributors and retailers had conspired to inflate CD prices.
"This settlement will put cash in the hands of millions of consumers and music CDs in libraries and schools throughout the country, and will ensure that the challenged distributor/retailer practices will not resume," Hornby wrote.
Details still to be decided
The ruling, however, does not stipulate exactly how much consumers will receive or when the checks will be distributed. More than 3.5 million consumers filed claims, now estimated at $12.63 each.
Hornby asked lawyers to present him with a report by the end of the month on how much it will cost to distribute the checks and how much each check will be.
He also deferred ruling on a plan on how millions of CDs will be distributed to the schools and libraries.
The lawsuit, signed by the attorneys general of 43 states and territories and consolidated in Portland in October 2000, accused major record labels and large music retailers facing competition from discounters like Target and Wal-Mart of conspiring to set minimum music prices.
The defendants -- Sony Music Entertainment, EMI Music Distribution, Warner-Elektra-Atlantic Corp., Universal Music Group and Bertelsmann Music Group, and retailers Tower Records, Musicland Stores and Transworld Entertainment -- deny any wrongdoing. Attorneys representing the companies declined to testify in court.
Old settlement disapproved
Of the total settlement, $75.7 million would be distributed in the form of 5.6 million music CDs sent to libraries and schools throughout the nation.
The proposed cash settlement in the case totals $67.3 million, with roughly $44 million to be distributed to the public. The remaining cash will go toward distribution costs and legal fees.
Hornby disapproved a settlement agreement regarding music club sales that would have been just over $1 million in cash and provided 50 percent discounts for club members on one to three new CDs.
Hornby wrote that virtually all the cash would go to attorney fees, leaving little value to club members. He added that music club defendants have not proven that they were part of any pricing conspiracy.
<!--QuoteEnd--></td></tr></table><span class='postcolor'><!--QuoteEEnd-->
Comments
I have servers to help pay for and all.. That or I can blow it all on candy. Can I do that, mommy?
But it's good anyway. Die, capitalists.
Fight the power and whatnot.
But it's good anyway. Die, capitalists. <!--QuoteEnd--> </td></tr></table><span class='postcolor'> <!--QuoteEEnd-->
They got to that point because of regulation (FTC and Parental advisory labels) so it is even in a capatalist eyes it is a bad monopoly.
Remeber all that stuff after columbine about music causing violence, voila industry comes together to fight them and there regulations but loose anyways. Regulations make it harder for competition and tadah you have the trust of the RIAA.
So actually it should be die socialist!
But it's good anyway. Die, capitalists. <!--QuoteEnd--> </td></tr></table><span class='postcolor'> <!--QuoteEEnd-->
I actually read about this in penny-arcade a couple months ago. There was some kind of webbpage where you could claim that you had bought cd:s during that time period and there for was intitled to recieve money from the record companies. To late to sign up now though