CD Wow goes into receivership

[LeMarchand]

http://www.pocket-lint.co.uk/news/news.phtml/9 127/10151/CD-WOW-goes-into-receivership.phtml

Internet retailer CD Wow has finally gone into receivership. The retailer would import (legit!) CDs and DVDs from sources like Hong Kong, where the record and film companies sell them at a fraction of the UK cost, and sell them in the UK. The discs would be legal (not pirate) copies, but bought from another area. The company was recently fined �41 MILLION for this practise, and has now gone into receivership. A while back, Lik Sang (http://www.lik-sang.com/), who did something similar with games and related hardware/peripherals, closed down after a legal onslaught from Sony who objected to cheap PS3 imports. (Particularly annoying as Lik Sang produced some interesting gadgets themselves - strokes GBA CF Movie Player).

Anyway, whilst these folks have obviously broken the law (or they wouldn't have lost court cases), is the law fair? Why is it possible to ship such goods over from abroad, sell them cheaper than "normal" sources and still make a good profit? Why should the UK pay more for so many things? (Even more than America in some cases). Or are the media giants merely charging the going rate in the relevant countries?

[Gromit]

No, the system is not fair, it is restrictive and anti-competative.

The record companies have been ripping off the British consumer for many decades and we and the government allow them to do it. Even in the digital age where the product doesn't even physically exist and is just a series of numbers, the record companies insist that UK customers pay more than anyone else. CDWOW have fallen victim to the minefield that is Copyright Law. Apparently music is licensed for certain areas of the world only. To cross boundaries with the product is a breach of copyright.

The Government and the BPI should realise that the CD business is now a global market place, and they should price their product competitively and fairly if it wants to keep its UK market.

[annie0000]

My husband regularly buys cd's online from the states for his own use - I take it that this is perfectly legal? The website is cduniverse.com. He pays postage etc which I presume incudes tax. Still works out cheaper than cdwow or 101cd - well it does for the obscure stuff that he buys! postage is about 8 dollars for the first cd then a dollar for each after that.

[jake-the-peg]

So lets see.

For companies to exploit lower salaries abroad by exporting work to developing countries is legal and good.

For individuals to import their products from such places where they're cheaper is illeagal and bad.

Talk about wanting to have your cake and eat it!

And of course now everybody will just buy illegal pirate copies - what a farce

[LeMarchand]

annie0000, I've never heard of it being illegal - millions of people do the same. I think the difference is when it is done on a bulk scale for selling on. Mind you, I would imagine that there are people lobbying (aka bribing) various politicians to make personal imports illegal!

[annie0000]

Thanks LeM. Whilst I have no idea where the company gets the CDs that my husband buys, they tend to be obscure blues stuff, that I think probably originate in the states. We are talking advantage of the exchange rate rather than sweat shops - I hope.

[Bazile]

It is not only music - most products you will find is sold here at a higher price than other countries .

Untill the british public stop buying these products ( those things we can do without ) these companies will continue to take advantage

[Sabbath]

Here in the United States people are always demanding low prices for consumer goods. Then we complain because goods are imported from China. The goods can't be made in the United States because it cost too much to manufacture them because we U.S. citizens demand high wages. Then we complain because all the jobs are overseas or because Mexicans are "stealing" jobs because they're willing to work for lower wages.
I think we just like to complain.

[LeMarchand]

@ Bazile: Sounds like an idea, but I'm not sure that it's workable; that sort of media is too "I want it NOW" for people to wait. (I personally rarely buy DVDs on release these days - I wait 2 or 3 months until they drop to �5 to �10).

@ Sabbath: We have the same problems/dual standards here (though it's Polish people "stealing" the jobs). The latest one is that supermarkets should carry more local and/or organic produce (which is obviously going to cost more) - of course, until everyone (myself included, but I'm not fussed where and how my food is grown) went to the supermarkets for their prices, there were plenty of local greengrocers who provided such a service!

[O'Reilly]

i have bought dvd's from these people and I never knew why they were so cheap until this post. Surprisingly I can still access the site so are they still trading? There's no notice that they are in receivership which is a bit naughty as if I was unaware I would be ordering and buying dvd's today. Would I ever receive the order or have my money refunded? But certainly the dvd's do come from Hong Kong - I could not get the 1940's "Rebecca" so I ordered it from CD Wow - I received the dvd - the cover was in chinese (apart from the name Alfred Hitchcock) and the film is in English with chinese/english subtitles - BUT the spine of the dvd cover is proudly printed with the word "RELECCA"

[LeMarchand]

BUT the spine of the dvd cover is proudly printed with the word "RELECCA LOL.

As far as the receivership goes, having worked in 3 shops that have gone that way, it isn't generally spread about until a firm decision is taken. (E.G. No-one wants to buy us - sell up the stock for what we can get, or We've got a buyer! - lose the dead stock). I'm guessing that this is to ensure a solid transfer of goodwill etc if the business is sold as a going concern.

In theory (especially if the goods are in stock) ordering shouldn't be a problem. I don't think I'd risk it unless the item was impossible to find elsewhere, though.