We sell music, not formats. We are no more in the business of manufacturing plastic to sell at a premium than a motion picture company is selling celluloid: it is selling movies.
There are no excessive profits in the industry. A report by Coopers & Lybrand in 1990 revealed an average profit in the British record industry of 5 per cent. A reduction of pounds 2 or pounds 3 in the prices of CDs can only mean either reduced investment or job losses. British record companies have given British consumers the best value in the world in terms of the range of repertoire available in new talent.
If there is to be a Monopolies and Mergers Commission investigation, in spite of the fact that the Office of Fair Trading has already examined and cleared us once, then so be it. At least we will have the benefit of being examined by impartial and intelligent people who understand the concepts of marginal costing and basic economics.