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Apple says content providers like record companies, TV networks and movie studios are to blame

Apple, Microsoft and Adobe are currently being questioned for the high prices they charge Australians for digital products, but Apple accused traditional content distributors like record companies for the price hikes.

An Australian parliamentary committee is investigating Apple, Microsoft and Adobe for charging Australian customers around 50 percent more for digital products (and sometimes hardware) than customers in other areas of the world -- including the U.S. 

Tony King, vice president for Apple Australia, New Zealand and South Asia, said that traditional content providers like record labels, TV networks and movie studios are to blame because digital pricing is based on wholesale costs set by these content holders. 

"The content industry still runs with perhaps old-fashioned notions of country borders or territories or markets," King said. "The cards are in the hand of the folks who own the content, that is not in our hand to play."

Apple, Microsoft and Adobe also said that prices are higher in Australia because of higher labor costs, copyright issues, geographical product differentiation and Australia's 10 percent goods and services tax. 

A survey by consumer advocacy group Choice showed that both hardware and software sold in Australia were priced 50 percent higher than the same items in the U.S. 

While King pointed out that products like the iPad mini and Final Cut Pro software were the same price in Australia as the U.S., other products clearly are not. For instance, albums like Justin Timberlake's "20/20 Experience" and AC/DC's "Back in Black" on iTunes are priced 50 percent and 70 percent higher in Australia compared to the U.S. respectively. 

For Adobe, Australians have to pay A$3,175 ($3,300 USD) for CS6 Design and Web Premium software while Americans pay just $1,899.

On Microsoft's end, the committee said that Australians pay A$4,136 for the same products that Americans pay the equivalent of A$2,324 for. 

Source: Reuters

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By Reclaimer77 on 3/23/2013 10:22:17 AM , Rating: 0
Which, by the way, Australia (I capitalized this for you, kinda embarrassing your own country wasn't spelled right) was for the most part not affected by, because, ah, we do things.

Yes because, again, Protectionism. You've largely isolated yourselves from the world economy. Which, hey, I think isn't necessarily a bad thing. There's LOTS of upside to that, seriously.

But one of the downsides is higher prices across the board.

I'm just not sure what the OP expected us to say about this.

P.S I didn't see you guys bitching much about our military when you signed the US-Australia Security Pact

RE: surprise surprise.... oh & I have my solution
By ae00711 on 3/23/2013 10:31:50 AM , Rating: 1
LOL! you for some reason presume I'm patriotic - couldn't give a rats arse that I spelt australia without the capital

politics of this country, as well as what it does with others (like the united states of america - oops, no caps!) is entirely uninteresting to me. Heck, I don't even vote!

I don't seem anyone bitching, nor wanting yank army base - aussies are by & large too complacent to give a crap. Besides, I bet you have looked all that hard - I'm sure there are a handful of aussies on both side of the fence.

By ShaolinSoccer on 3/25/2013 12:55:37 PM , Rating: 1
If you hate "yanks" so much, why the hell are you posting on a yank website? Oh right, because you're a DOUCHEBAG!

By Paj on 3/25/2013 9:51:51 AM , Rating: 3
You couldn't be more wrong. The Australian economy is now more open than ever, with a steady decline in trade tariffs since the 80s. The trade relationship with Asia (China in particular) is huuuuge.

"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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