Neowin.net - Malaysian govt tells public to quit buying CDs, DVDs

Malaysian govt tells public to quit buying CDs, DVDs

Posted by TheFamousGeoff on 02 June 2003 - 14:25 · 26 comments & 1846 views

If the music and movie industry won't lower the price of CDs and DVDs, there's only one thing to do: punters should stop buying them.

Just ask the Malaysian government. This week, Deputy Domestic Trade and Consumer Affairs Minister Datuk S Subramaniam told buyers to quit spending - temporarily, at least - to force the industry to reduce prices.

Subramaniam's statement, reported by the New Straits Times, apparently followed requests by Kuala Lumpur that "industry players" reduce "CD and VCD" prices - a demand rejected by the music and video business.

Ironically, the government made the request in order to help the industry: it offered the move as a solution to escalating music and movie piracy.

News source: The Reg

"There are some new local movie releases that are priced at MYR10 ($2.64). The VCDs are affordable and not bootlegged by illegal manufacturers," said Subramaniam. "Those priced at MYR30 ($7.91) and above are normally the ones that get pirated. This proves that the price factor is the main reason why consumers buy pirated CDs and VCDs."

It's a point oft-made by music and movie consumers, but this is the first time we've heard a national government come out and make this oh-so-obvious suggestion. Of course, music and movie companies won't accept it, no matter from where the advices comes. As Subramainiam himself noted this week, they'll continue to state that CD and DVD prices are justified by admin costs, R&D, production and artist royalties.

We don't doubt they're a factor, but given declining legit CD sales - though DVD sales are accelerating, it has to be said - some sort of price realignment is surely necessary. Particularly given the disparity between the price of the same product in different territories.

The Federation of Malaysian Consumers Associations president Professor Datuk Mohd Hamdan Adnan took up said Subramainiam's theme. The paper reports that peddlers had a better marketing strategy compared with authorised dealers: they provided more information and their goods were easily available and cheaper.

"He said [this] based on his own experience," then New Straits Times reports, because "the bread vendor in his hometown also sold pirated VCDs because there was demand for them and the commission was good."

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(1 reply) #1 Posted by aem4162 on 02 Jun 2003 - 14:38: It would be great if a boycott like that could be done here. But then the industry would raise prices to recoup losses incurred by the boycott...

I hope it works

#2 Posted by CyberKewl on 02 Jun 2003 - 14:39: Well that depends. Usually when demand is low, prices will go down eventually because no one wants to buy. That's why shopping malls have discount sales and all that

(1 reply) #3 Posted by smek on 02 Jun 2003 - 15:09: i don't buy cds and dvds neway

#4 Posted by redtag on 02 Jun 2003 - 15:10: i am a simple malaysian...(forgive me by my broken english)

- please low the cost of original cd and dvd, then people can buy this item...
- malaysia is not like modernized country yet, so please think again the fate for those who live in rural areas! Where can they get cd? still the nearest should be night markets!
- Facility/shop to buy original cd/vcd/dvd only available in major town and city. This look bad enough for people to get original items.
- if compared to modernized country, original item should be as low as 19.90 at average, but if compared to this country, it can fetch up to myr100.00 per item at average.
- how will people to learn grahic design/computer software if they need to buy original software at the expenses that possibly can buy a house or cars?
- the goverment made a campaign of a computer in each house, but whats the significant if people cannot buy the softwares?
- please look more on local malaysian forum and what i can say is almost 90% didnt support what the goverment is doing.
- i also notice that no spesific second hand shop like modern country do. They should encourage those "pirate" to do legal selling by trying to be a pioneer in second hand shop in this country.

i dont support piracy as well...but think again before you act!

#5 Posted by tntomek on 02 Jun 2003 - 15:11: It's a start...

Mark my words...RIAA won't exist in 5 years and any 'smart' artist will make their music availiable online for CHEAP.

#6 Posted by redtag on 02 Jun 2003 - 15:17: smart artist make music online for cheap? ..please..please... this country still dominated by dial up user..although residental adsl have been introduced, its still limited to major city and town. So how will those talented make money online? i think its not going to happen in this country.. well, maybe good opportunity for other country.

(2 replies) #7 Posted by kljs on 02 Jun 2003 - 15:35: I am Malaysian....

We BUY pirated CD's because we the commoners can afford it.
Compare this....

(note : RM is Malaysian currency)

Pirated Copy - RM3 to RM 5

Original copy - RM 20+

Tell me, (money fussy) people will choose which one?

We DON'T buy originals, because we CAN'T really afford it.

Buying food is already making a hole in the pocket.

Go figure........
High money usage living, but not earning enough.........

#8 Posted by poind on 02 Jun 2003 - 15:39: Okay, though getting a tad away from original topic (yes, these companies need to price things appropriate to market capability if not doing so results in widespread pirating, and thus "bad" new habits get developed--marketing means research your market, people!!).... Now then....

Over the next 5 years, "smart" artists are going to realize the need for industry more than ever and that "art" can not all be transmitted, learned, etc. online. Far from it, even.

The "smart" artists will return to major labels after several years of trying the independent thing as they find significant need for industry-coordinated concerts, marketing, recording, and so on.

Of course, the smart labels will drop CD prices once they wake up and realize $20 CDs can't really compete anymore with $20/month for Netflix or all the other entertainment options now out there. Also, of course, it's **highly** unlikely long-lasting superstars like U2, Sting, etc. are going to be able to be developed in the future. Get ready for it. Attention spans will be too short with all the info out there now, and music profits will keep sinking, file-sharing or not....

(3 replies) #9 Posted by posthumous_GRIN on 02 Jun 2003 - 15:40: It is amazing how desperately the MPAA and RIAA are holding on to the old pricing structure. It really shows how outdated their mindsets are that they are unwilling to comprimise. Everybody knows that cd's don't have to cost $16CDN, it is simply too high. They have to follow Apple's lead and offer a cheap, per-song download option. Then and only then will I consider not using P2P's to get my warez...

#10 Posted by warr on 02 Jun 2003 - 16:07: yea. the only way to fight the piracy is the music industry reduce the price. if they still hold up so high price, well, i have to say: i do support piracy, because it makes my life easier.

#11 Posted by aminmizar on 02 Jun 2003 - 16:18: malaysia boleh.

#12 Posted by Zennith on 02 Jun 2003 - 16:28: WHat else is new from the Malaysian government? Nothing. But this time, what they have said is true.

Alot of Singaporeans venture across the causeway to buy pirated vcds. It's a well-known fact.

Maybe the Music industry should really look at the problem instead of trying to avoid it.

#13 Posted by Daffy_Duck on 02 Jun 2003 - 19:13: "punters should stop buying them."

Good for the Malaysian government to try and help out the soccer players.

#14 Posted by zivan56 on 02 Jun 2003 - 22:52: In Europe most of the markets have pirated CD's. Some artists dont care though, they even offer free downloads from their site.

#15 Posted by David3k on 03 Jun 2003 - 02:45: I think this is a bad move. nothing more.

#16 Posted by kljs on 03 Jun 2003 - 05:01: All they the originals need to do is just lower the prices a little more.......

#17 Posted by TheFamousGeoff on 03 Jun 2003 - 11:11: Ooh look, my post was approved, and I completely failed to notice until now! First contribution: yay me!

(1 reply) #18 Posted by TheUndead on 03 Jun 2003 - 16:57: LoL

well done pal

errr...where'd you dig this news from?

r u a malaysian?

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