Last year (October 2006) the Hong Kong online retail company, Lik-Sang, was forced to go out of business by Sony® with lawsuits in the UK regarding the retailer's sales of PSP consoles before Sony officially release it in the UK. Now the record companies in the UK and EU is complaining that the online retailer CD Wow is selling CDs and DVDs below the UK/EU SRP (suggested retail price). The UK courts agree with the major labels and fined CD Wow close to USD81 Millions. CD Wow is going to appeal the ruling.
Will this latest ruling shut down CD Wow? Or will this finally expose the high profit margins the major labels are enjoying for so long. Most of which do not go back to the artist.
May be along with this story and what is happening in online music, we can force the major labels to redefine their business models.