Feeds

Virgin carries out payment freeze threat

Holds £50m to ransom

  • alert
  • submit to reddit

Boost IT visibility and business value

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
NBN Co claims 96 mbps download speeds for FTTN trial
Umina trial also delivers 30 mbps uploads, but exact rig used not revealed
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?