TNP, 26.09.05: Sorry, No Best-Selling Album Award

Basically they�re saying that there�s no best-selling album award because RIAS stopped keeping track of local CD sales because of the �sheer volume� of cheap Chinese parallel imports.

Record companies are afraid these imports will affect their sales. To think they were complaining so recently that illegally downloaded music damages their sales significantly.

Let�s look at the situation from an econs point of view.

First, there are very few record companies in SG. Hence it�s likely that the market is an oligopoly. Further evidence to support this is that the price of CDs has remained largely constant: around 20 bucks (!) for a cd. Kinked demand curve and all that reluctance to change price.

Being an Oligopoly, they�d all be making supernormal profits. Which means a higher price for us, and (possibly) X-inefficiency and other stuff.

But now there�s a new entrant in the market who�s efficient as heck. What happens? By right the Oligopolists should shut down and leave the market, but instead of following the notes, they complain. Weird.

I�ve realized I can�t be bothered to continue any more. The point is that Oligopolists (local record companies) should either lower their prices to stay competitive, or become more efficient, or both. Or Leave the Market.=)

The final point is that they should move toward a PC firm�s model.
Anyway, this is all very good, I�ve got Liang Jing Ru�s Silkroad of Love at SGD 9.90! impossible price to get from the oligopolists. XD.

<3 Fish Leong! Get her album. And Buy Original. Original Parallel import please btw. Use your dollar vote to vote for cheaper stuff =)

written at 6:42 p.m.