|
The internet was supposed to free the marketplace, but in the music industry the opposite applies, writes Alex Malik.
The digital revolution has been used as an excuse to wind back the clock.
This is not a uniquely Australian problem. Because record companies have repudiated the global nature of the internet, consumers worldwide have been forced to pay too much for music downloads, and their choices have been limited.
When will parallel-import laws be extended to the digital market, so that Australian consumers are finally charged a fair price for downloads?
Throughout the world, how much have consumers been overcharged for digital downloads as a result of this imposition of geographical boundaries on the internet? Where have these excess profits gone?
Years ago, the record companies carved up the world market for CDs to maximise profits. When Australia rejected this move by turning to digital technologies the record companies were not perturbed. They simply carved up the global market for digital downloads in a similar manner. Competition was reduced, and the song remained the same.
|