VeNT said:
then how is it I can go to america and buy a CD for sub £10 after all the taxes?
First thing will be US sales tax at typically about 6%, rather than 17.5% VAT. Then they'll be economies of scale due to tye size of market. And US versions of the CD are usually different to the UK ones, which means separate production process. Besides, it may well be cheaper to manufacture in the UK than manufacture inthe US and ship to the UK.
Then there's the cost of operating in the US. Most US malls carry nothing like the business overheads that UK shops do, because there is (in most cases) nothing like the premium on land. And so on.
But all that is besides the point. I said that my specific figures were enitely hypothetical, but the principle isn't. It isn't about whether they can or do sell in the US, it's about what price point ensures maximum profit. It may be that in the UK, they could sell at £10 without going into loss. I'd be astonished if they couldn't. But, if they reduce profit by doing so, why would, or should, they?
And if that is the case, it is UK buyers that are to blame. If you won't pay £15, they would HAVE to cut prices. But frankly, if they don't have to, they won't. Nor would I. As I said, they are a business, not a music-providing social service.
And to anyone that says they should cut prices even if it reduced profits, when was the last time you refused a pay rise, or suggested your boss pay you less? Quite. Then why should investors in record companies do so?