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It's not just Napster causing musical waves

01:00 Mon 19th Feb 2001 |

By Andy Hughes

ANYONE who buys recorded music will tell you�- CD's cost too much. It's been a familiar lament among music collectors for as long as recorded music has been commercially available.

Music is bigger business now than at any time in its history, and bigger stakes among bigger players have meant that the thoughts and feelings of the music fan who buys the end result is not always the main concern.

As the Napster debate continues to generate headlines, a side issue is starting to emerge, with even more potentially sinister implications.

The gloves are most definitely off as a possible legal fight shapes up between�America's National Association Of Recording Merchandisers (NARM)�- known hereafter in the interests of simplicity as The Shop Owners, and Sony Music, one of the largest, and still growing, entertainment and multi-media companies in the world.

The significant aspect of that description is the 'multi-media' part, because herein lies the problem for The Shop Owners. In the expanding world of consumer electronics, the line between computers, the Internet, and entertainment is being slowly, but surely eliminated. The record retailers are incensed at what they see as Sony's use of its many-armed empire to squeeze them out of business.

Specifically, Sony is being warned that the notion of sales of its artists' CD's at lower wholesale prices to its own Internet outlets, than to the NARM dealers is being viewed as potentially unfair competition. Added to this is the perceived accusation that Sony is forcing the retailers to stock versions of albums that include web pointers advertising merchandise sold at Sony-owned outlets.

It could be argued that the retailers are simply seeing their profit margins eroded, a concept unlikely to win them any sympathy among the average high street shopper. But the consequences of this level of corporate battle are likely to be far-reaching, as the companies trying to bring all aspects of the multi-billion-entertainment industry under central supervision fight for overall control of every aspect of production and marketing.

The person in the street may see CD's, videos, computers and games being priced at the whim of the winner, because there is no-one left to challenge them.

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