HMV asks Competition Bureau to review Rolling Stones deal with Best Buy
TORONTO (CP) – The fight over rights to sell a new four-disc Rolling Stones DVD has been sent to the Competition Bureau of Canada.
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Retailer HMV Canada made a formal application to the independent body asking it to review the Four Flicks DVD retail exclusivity deal the Stones made with Best Buy and its Future Shop subsidiary. The company took the step after trying to convince TGA Entertainment, the Stones’ management company, to make the DVD available, said Humphrey Kadaner, president of HMV Canada Inc. TGA never responded to the formal request, he said.
“There’s the risk that this could become a common practice and make the playing field unlevel,” Kadaner said. “At the end of the day all we’re asking is for artists, especially major artists, to make their product available to everybody, not just HMV, and let the consumer decide.”
The application, filed Wednesday, claims the exclusivity deal breaches Competition Act regulations over denial of access to supply of product as well as a reduction in competition at the retail level. It also argues that exclusive deals are objectionable to other retailers and most harmful to music speciality retailers.
The Ottawa-based Competition Bureau evaluates every application received to see if any laws have been violated, said Madeleine Dussault, assistant deputy commissioner. If the bureau suspect a law’s been broken, the case will be brought to a tribunal. The process can take about a year.
“Any industry representative can come to the bureau and raise concerns with us,” she said. “There’s a provision that says that under certain conditions exclusivity could be the subject of review . . . but just the fact that it’s an exclusive agreement may or may not be anti-competitive.”
The Competition Act is over 100 years old. The exclusivity provisions have been around since 1978.
HMV, Music World and Sunrise Records pulled everything by the Rolling Stones from stores shelves on Oct. 28. The Stones responded saying the deal was made with Best Buy because that chain offered the cheapest sale price for the set. It retails for $39.99 at the 16 Best Buy and 107 Future Shop stores across Canada.
“We have always believed in having the widest range of products available to our customers,” said Kadaner. “When we saw this exclusive deal we vehemently objected to it and hence pulled all the product from the stores to reinforce how strongly we felt about this.”
Kadaner said the company has yet to hear any fallout about pulling all the Stones’ material.
“The feedback at store level has been outstanding,” he said. “Canadian consumers don’t like to be told where to buy their product.”
The Four Flicks DVD is a unique collection of concert footage and backstage antics.
One disc is a documentary which takes viewers from the very beginning stages of organizing the world tour to opening night in Boston. Canadian fans will particularly enjoy the footage from Toronto rehearsals and from the surprise gig the band performed at Palais Royale. There’s also intimate footage of the band members with their children and spouses as well as a glimpse of Mick Jagger’s workout schedule and dance rehearsals.
The 2002-03 Licks tour played three types of shows: stadiums, arenas and theatres. Each type is showcased on a separate DVD – from New York City’s Madison Square Gardens, London’s Twickenham Stadium and Paris’s Olympia Theatre – providing fans with a wide range of songs from the band’s career. There’s also a five minute mini-documentary of the Toronto Rocks concert which the Stones’ headlined to help the city shed its SARS-tarnished image.
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