The Chairman of the ACCC, Professor Allan Fels today welcomed Cabinets consideration of reforms which would remove the import monopoly enjoyed by multi-national record companies.
For many years there has been a gap of around $7 Australian between the prices of new CDs in the United States and in Australia. [After correcting for tax differences and exchange rates.]
It is inconceivable that this gap would remain if CD shops could import or threaten to import directly from the US, he said.
A price fall of at least several dollars, if not more, is likely if the restrictions are lifted.
The present restrictions prevent CD shops from directly obtaining CDs from the USA. Only the multi-national record companies can import them. They have the import monopoly.
The fall in prices is likely to lead to a boom in CD sales. At present the number of albums sold per head in Australia is about 2.9, whereas in the USA it is about 4 because of lower prices there.
I would also welcome any increase in penalties for piracy, Professor Fels said. There is no likelihood of any increase in piracy under the reform proposals but there is a good case for increasing piracy penalties anyway.
For further information about this media release: Professor Allan Fels, Chairman, pager (016) 373 536. Note: Professor Fels is in Hobart on Monday 29 September and Tuesday 30 September, to attend the Conference of Economists. Ms Lin Enright, Director, Public Relations, (02) 6264 2808.
For many years there has been a gap of around $7 Australian between the prices of new CDs in the United States and in Australia. [After correcting for tax differences and exchange rates.]
It is inconceivable that this gap would remain if CD shops could import or threaten to import directly from the US, he said.
A price fall of at least several dollars, if not more, is likely if the restrictions are lifted.
The present restrictions prevent CD shops from directly obtaining CDs from the USA. Only the multi-national record companies can import them. They have the import monopoly.
The fall in prices is likely to lead to a boom in CD sales. At present the number of albums sold per head in Australia is about 2.9, whereas in the USA it is about 4 because of lower prices there.
I would also welcome any increase in penalties for piracy, Professor Fels said. There is no likelihood of any increase in piracy under the reform proposals but there is a good case for increasing piracy penalties anyway.
For further information about this media release: Professor Allan Fels, Chairman, pager (016) 373 536. Note: Professor Fels is in Hobart on Monday 29 September and Tuesday 30 September, to attend the Conference of Economists. Ms Lin Enright, Director, Public Relations, (02) 6264 2808.