Feeds

Virgin carries out payment freeze threat

Holds £50m to ransom

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

Virgin is witholding £50 million in payments owing to record labels, in its campaign to secure better discount terms for the Virgin Our price retail chain, The Sunday Times reports. The music companies have cut off supplies to Virgin, in retaliation, the paper says. Virgin claims it is being offered worse margins than upstart online music retailers and -- unless its suppliers capitulate -- threatens to stop selling music within two to three weeks in its high street shops. Virgin accounts for 15 per cent of UK music sales, according to the ST. Currently, music represents 45 per cent of the sales mix within Virgin Our Price. The retailer says it will pump up DVD and mobile phone sales, to replace music. The company wants to double its discounts from 10 per cent to 20 per cent and to move music from firm sale to sale or return. The dispute is reminiscent of a spat between Computacenter and Compaq in the early 90s. In its lust for retail sales, Compaq initially offered better terms and conditions to Dixons -- then a PC neophyte -- than to the UK's bigget reseller. Computacenter went public with a warning shot across Compaq's bows. The Virgin/record industry dispute differs in one key respect -- the £50-million held to ransom by Virgin. This may do wonders for Virgin's cash flow, but what will it do for the company's standing with credit rating organisations? Virgin says it will pay up, whatever the outcome of the dispute, the ST reports. So why not pay up now? ® Related story UK retailer threatens music biz with payment freeze

Securing Web Applications Made Simple and Scalable

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.