Album Distribution in Various Territories

Jim LotFP

The Keeper of Metal
Jun 7, 2001
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Helsinki, Finland
www.lotfp.com
... because I suspect this thread could be closed soon since the bands' releases in question are affiliated professionally with the owner of that forum, I wanted to post this here. Also, because nobody in this forum is professionally involved with (or a customer of, as far as I know) the bands, labels, vendors, or management involved, nor do I have reason to believe that anyone here is even a fan of the bands in question, I figured you guys could be completely objective in ripping apart my logic.

Basically, one vendor (whose hype listings for their offerings look like they were written by a hyperactive in desperate need of a spellcheck) is advertising their new website and discount plan, blah blah.

Then...

Claus from Intromental said:
I seriously hope people will stop buying CDs from this vendor, seeing as he is illegally selling copies of our bands:

Circus Maximus - european version
Raintime - european AND japanese version

neither is to be sold in the US, and what CD INZANE is doing is illegal parallel-import.

JimLotFP said:
Shouldn't this be in court then?

Claus from Intromental said:
It's up to the labels to do that. All I can do is make people aware of him illegally parallel importing albums.

And he makes the point:

Claus from Intromental said:
What happens is that if the US label see lower-than-expected sales they will not be able to put money into promoting the band, (especially tour-support) and into the next album. This means that while one territory might be going strong, another territory suffers, and this in the end effects you, the consumer.

So my response to that:

Does it really affect the consumer? If someone knows where to order to get European imports at an acceptable price (and Inzane's prices are acceptable enough for some people or they'd get no orders, correct?), how would the lack of a domestic version hurt them?

(and I've heard the argument, I forget from who, that a lack of a domestic label would invite inflated prices on the import from vendors who know they have fans bent over a barrel... which doesn't hold up, because the vendors are still competing with each other, and the very thing being argued for here is a monopoly by a domestic label instead of a foreign label, and I don't understand how that is any better unless it's "us having a monopoly" is better than "them having a monopoly".)

If import sales are hurting domestic sales that badly, why isn't one label handling their business in multiple territories? The sales are happening anyway!

How in the world does a European or Japanese pressing, with the dollar going straight down the crapper, compete with a domestic pressing these days anyway? Obviously people are paying more for Japanese versions, and I'd guess European pressings are more expensive in the States than US pressings. If that's the case, if people are buying more expensive foreign editions instead of cheaper domestic versions, then what is the point of telling these people how to buy? What, is one single person is buying a more expensive album through mail-order of obscure bands by complete accident? If someone is buying an expensive import by mail order without knowing about a domestic version, that tells me the domestic label's promotion isn't worth shit because they're missing the hardcore fan willing to spend money and willing to search out the product to do it rather than wait for it in their local store.

Shit, even if somehow the import is cheaper, what does it say about the domestic label when a foreign pressing is appearing cheaper and in place of that domestic pressing? I realize labels trade with each other for product and that can greatly lower costs from the usual distribution model, but it would be really bad form to put the screws to labels for handling their own business instead of insisting they go through a multi-tiered distribution model just so it doesn't inconvenience your releases.

And correct me if I'm wrong here, but when you say "illegal," this a contract issue more than an actual "breaking laws" situation, isn't it? If it were illegal under the laws of the land, it wouldn't even be a "sue them" issue, it would be a "make a simple phone call to the appropriate authorities" issue... fill in the holes of this logic, please.

If it is a contract issue, does CD Inzane have any contract with the band, label, or management? If not, then the problem isn't with them and being all "this is illegal" in a post from them is completely bad form. The problem would be the distributor that sold it to them, isn't it? Or maybe a step or two up the food chain, someone had a contract to sell it in only X territories, and they are the ones you should be going after. But they're likely to be primary distributors in the home territory, and making life tough for them is probably a stupid idea. So going after the guy who isn't breaking a contract because he never signed a contract is just more convenient.

In any event, whether I'm guessing right or fell off the logic wagon along the way, this is still bitching at customers for buying officially pressed versions of albums! Stop it! If your business model is in danger because people are fucking buying albums, asserting your entitlement to have your albums bought is just fucked up.
 
I like your reply Jim. (And if you read my reply ... the legality is in copyright law). And yeah, this happens all the time with CDs... not just those specific companies. As I said, its why Japanese sellers demand 'more' product on their albums, so that they can sell them at the higher prices that they have to... in order to compete with the cheaper prices of buying the US/Euro distributions.

One issue I've been trying to work thorugh is this scenario is such:

I as company X have an album that I want to sell. A store in Russia can only make a profit on it if it sells it for $8. To do that, and still make a profit, the owner will only give me $5 per item. Typically I wouldn't even sell this product to any company for under $10. But because I want to get my product out in Russia I agree with this store to sell him copies for $5.

Several stores in America buy them from me for $10, and sells them for $14.

Another store called... JCB, in America buys the ones off the guy in Russia for $8 and sells them for $12. JCB doesn't ask me. JCB is now selling my copywritten material without my permission.

In this case the JCB store also hurts me, because I'm having to give this Russian dude lots of albums at the lower price, which end up in other markets because he becomes a redistributor of my product.

Heh. This is the reason we have regional codes on DVDs, and why people hacked that system pretty fast and now you can buy DVD players for fairly cheap that will play any regional code.

The market always wins.