Chapter 5: Music, Films and Console Games
New internet markets could contribute to increased competition on markets for music, films and games
Analyses by the Danish Competition Authority indicate that competition is weak on the markets for music, DVD films and console games. There is only a limited price variation on newly released music, DVD films and console games in Danish retail stores. At the same time prices on music and films are higher than in other EEA countries. Furthermore, access to parallel import is restricted, because parallel import of music, films and console games to Denmark from countries outside the EEA is prohibited.
Technological development might help solve some of the competition problems. The analysis shows that it is possible to save money by buying music, games and films in European internet stores. Prices in Danish internet stores are only slightly lower than prices in conventional retail stores. Consequently, it is important that Danish consumers recognize the potential for saving money when buying from European internet stores.
Competition from the new digital markets might also contribute to increased competition. The music prices in Danish online stores are lower than CD prices in conventional retail stores and in internet stores. Prices in Danish online stores are, however, higher than prices in foreign online stores, for instance in other EU countries. Nevertheless, due to the fact that rights holders partition the online music markets into national markets, Danish consumers are not able to buy and download cheaper music from foreign online stores. A single market for online music would increase the pressure on the traditional retail market and lead to lower prices and increased music sale.
The Competition Authority will work for a single market for online sale of music securing Danish consumers access to online music from foreign internet stores.
Furthermore, it is important to obtain easier access to parallel import of compact discs, DVDs and games from countries outside the EEA.
(Sune Chabert Larsen, Vibeke Schiøler Sørensen)