2010-06-27

Canadian Customers are Screwed! - A Letter to Michael Geist


(Michael Geist is one of Canada's specialists on the question of copyrights. He is a law professor at the University of Ottawa, where he holds the Canada Research Chair in Internet and E-commerce law. He is also a very popular blogger on that subject.)

Prof. Geist,

On a subject moderately related to copyrights (at least for those of us who still *buy* music...).

Please take two minutes of your time to check out this insightful comparison. I'd like to be able to do something about it, but I just don't know what. Your suggestions are more than welcome.

Keep in mind that, as I am writing these words (June 25th, 2010), the Canadian dollar and the US dollar are almost at par (1CAD = 0.96USD).

Example 1: Ozzy Osbourne's lastest CD (Scream), released on June 22nd, 2010:
Best Buy price on the US website: $7.99
Best Buy price on the Canadian website: $13.99

Example 2: Entourage - The Complete 6th Season (DVD)
Best Buy price on the US website: $18.99
Best Buy price on the Canadian website: $37.99

I could go on and on...

Are they kidding me?! Do they think Canadian customers are that dumb?! Both are new releases labeled with the 'on sale' red sticker price on the US and Canadian websites. And Best Buy is just one retailer among hundreds: Amazon, Future Shop, HMV, etc. They all advertize CD/DVD prices higher than their US "competitors".

As a Canadian, I have been living in the US for almost three years and I have recently accepted a faculty position in Canada. As a result, I am moving back and I am freaking out! I am a huge CD and DVD aficionado and these examples are no exception to the following rule.

For the same CD or DVD product, I have noticed over the years that the Canadian price is pretty much always 50% to 100% higher than the price found in the US. As if paying high Canadian taxes was not enough, we have to get screwed with twice the tag price on the CD or DVD itself! Why is it that Canadians have to shell out twice as much as Americans for the same piece of entertainment?

As a past and future Canadian customer, I am disgusted and outraged by this situation. In 2010, major labels and retailers *know* that customers will *never* buy CDs or DVDs at such high prices, especially when we compare what Americans pay for the same thing! Universal recently cut all of their CD prices below $10 in the US. Still no news on what will happen in Canada or elsewhere in the world...

Wake up, guys! Do you want to keep your industry alive or what?! $15-$20 per CD was the retail price in 1990! $10 per CD is a psychological cap most of us will never go beyond in 2010 (Canadian or American), and consumers everywhere are massively deserting the CD/DVD market because of such high prices and the accessibility of digital and "free" music. Worst of all, Canadian companies are pushing the limit to plain absurdity: CDs of Canadian artists are usually cheaper in the US than they are in Canada!

Somebody somewhere thinks Canadian customers are idiots. And sometimes I wonder if they are not right... Can we prove them wrong? And how?
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