In 1982, Sony and Philips introduced the compact disc, a digital music playback format that used a laser to read the disc. The compact disc was expected to quickly replace the long play record album (LP) that Columbia had introduced in 1949. The product took off quickly, even at a retail price that was nearly double that of a record album, and sales of record albums plummeted. The CD, as compact discs quickly became known, offered what audio magazines called “perfect sound forever” while offering immunity to the effects of the wear and tear that often left records noisy. The record companies reduced the price of manufacture through improved production methods, and the cost of manufacturing a CD soon fell below that of manufacturing a record. Even so, compact discs continued to sell well at the higher price, making the CD quite a profitable product, indeed.
In order to maximize their profits, the record companies decided to phase out the phonograph record. They told their retailers that they would no longer accept returns on defective albums. This caused many retailers to stop stocking records altogether, and the record album had more or less disappeared from the market by 1990. And then something strange happened. The record began to make a comeback. Sparked by a few artists that demanded that their record companies issue their product in record form, the LP never quite went away. New albums by bands such as Pink Floyd and Metallica were issued in the mid-1990’s in LP form, and those releases not only sold out, but now command a hefty premium on the collector’s market. A number of independent bands that were signed by small record companies began to issue records in addition to CDs, partly just to be “different” and partly because the band members just liked listening to records. In some cases, in order to spur sales of the record, artists would include an extra song or two on the record that was not included on the compact disc of the same album. Throughout the 1990’s and to the present day, several million record albums have been sold every year.
Granted, records are harder to find in stores than they were fifteen years ago, and an interested buyer might have to seek out a collector’s shop or buy them online. But new albums by major and minor artists, along with older, “classic” albums, continue to be released in the LP format. Last year, in Japan, EMI Records issued every album by the Beatles in LP form as limited edition items. They sold out quickly, even at nearly $500 for the set. The market for records is smaller than it used to be, but the record album still thrives.
Home Loans – Identity Theft Protection Could Hurt Home Sales
Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravel the problems created when someone’s identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a “freeze” on their credit reports. Those in the real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.
Debt Consolidation – How to Protect Your Credit Accounts from Theft
Last week, a security exploit at CardSystems Solutions, Inc, a credit card processor, may have allowed thieves to obtain as many as 40 million credit card numbers from unsuspecting victims. The theft was brought about though a virus introduced into the CardSystems that allowed external hackers to obtain access to the account information. Adding to the problem was the fact that CardSystems wasn’t supposed to have the account information at all. It appears that CardSystems “inappropriately” held onto the information after clearing the credit card transactions. At that point, the account information should have been deleted. CardSystems held onto the account information for supposed “research purposes.” Fortunately for those involved, the compromised information only included account numbers and not Social Security numbers, which would have assisted the thieves in identity theft scams. This latest security breach at a credit card processor outlines how anyone can be vulnerable to account or even identity theft. Is there anything that can be done about it?
New Bankruptcy Law – Targeting the Wrong People?
Last April, President Bush enthusiastically signed into law the oddly-named Bankruptcy Abuse and Consumer Protection Act. This bill, representing the biggest overhaul of bankruptcy law in twenty-five years, was written in order to discourage “bankruptcy of convenience.” Proponents of the bill, which included the credit card industry, say that the bill is necessary in order to stop an avalanche of bankruptcy filings by drug users and compulsive shoppers and gamblers. The law makes it harder to have debts wiped away, requires credit counseling for those considering bankruptcy, and holds attorneys responsible for paperwork errors by their clients in bankruptcy cases. The net result will probably be chaos, as fewer attorneys will handle bankruptcy cases, credit counselors will raise their fees, and more consumers with problem debt will be clueless as to what they should do next. Adding to the confusion are some new statistics that suggest that a large number of bankruptcies that are thought to be personal are actually business bankruptcies. As a result, the new law may be unfairly targeting consumers for punishment when they are not actually the biggest part of the problem. Worse, it could be harming small businesses.
