Ritchie on HMV

Business cannot compete on an unlevel playing field. Tax can and does unlevel playing fields.

So, corporation tax kills companies.

Remind me then: why are we killing companies by levying corporation tax on them?

15 thoughts on “Ritchie on HMV”

  1. Many businesses do manage to compete on unlevel playing fields. They might not like it but they manage it.

    why are we killing companies by not levying corporation tax on their competitors?

    Oh, Sir, Sir, can I answer this one?

    Because, in many of the cases the WGCE objects to, we are forbidden from doing so by EU treaties or regulations.

  2. Murphy is talking about the LVCR VAT relief which used to be available on goods from the Channel Islands. The effect of it was that most on-line orders of DVDs etc were shipped from Jersey or Guernsey so as to avoid VAT. HMV themselves set up in Guernsey a few years ago, but moved back the the mainland last year when the relief was abolished.

  3. I think this is an easy one, even for me.. High St has been dying a slow painful death since the 90s.. people are shopping not only on the internet but also in out of town shopping centres.. throw the end of free parking, increased business rates/VAT/energy prices into the mix and well……

    Now this is probably the bit were one of you clever chaps tells me I’m talking shit..

  4. Corporation Tax is paid on profits. HMV haven’t made a profit in yonks. So it’s certainly not Corp Tax that did them in.

  5. Tim

    Check out his prior post on Why the collapse of HMV is tragic and an indictment of Social Security cuts, hilariously entitled ‘ We used to have Social Security, now we just have fear’

    I’ll be interested to see whether my post makes it through the filters (my last few have in fairness), but effectively, between the two he appears to be:

    A:/ Blaming it on the mysterious ‘tax gap’ and the various tax avoiding companies (I assume he lumps in the big four supermarkets into this as well) that are all behaving perfectly legally, as #2, the superb ‘Surreptitious Evil’ points out.

    B:/ Advocate some form of near Feudalist regime that appears to again have parallels with the remaining Communist countries (Ok – not China). Again I wonder if any readers can recall the USSR – apparently each ‘residential unit’ had a series of ‘businesses’ (All owned by the State) which had a complete monopoly on those within that unit. I believe North Korea still uses that system, and it would constitute almost an ‘idyllic state’ in the man’s fevered and feverish imagination. Captive clientele and Producers protected by force of monopoly.

    Nothing from Arnald yet – I do hope he isn’t dead, as Dennis the Peasant speculated! Those fast food joints can be dangerous, even in the Channel Islands!

  6. Perhaps Ritchie should dwell instead on reasons for HMV’s demise. My local store in Taunton is almost entirely filled with cd’s on the 2nd floor. We now have Spotify and other similar streaming sites to enjoy our music ,and have had for some time , to be played on all our comps, phones, gadgets……..Can you see where i’m going with this ? The top honchos at HMV missed it , and its passed Ritchie by too.

  7. Phil and Andrew M are correct. Tax is nothing to do with it; (the far from perfect) Spotify etc killed the place. Who buys CDs now? It’s called progress, progressives.

  8. Been around 3 years since I last purchased anything in HMV. Not from any ideological reason, simply not being anywhere near a store most of the time.
    Music I tend to buy downloads or from specialist sites dealing with the stuff I’m after (that mainstream shops do not stock) if by CD.

    Has HMV changed much over the years to deal with its rapidly changing market? Has it cut costs and worked to increase market share? Or was it losing market share while costs increased?

  9. HMV was predicated on the 40 year old man who would wander in at a weekend and buy 70 quids’ worth of stuff.

    These days, the aid man buys it from Amazon at home, without going into a noisy shop. And his kids don’t buy this stuff. Itunes and spotify: horrible sound quality does not matter to them enough to make them want to splash cash.

  10. For years I used to buy several CDs a week. Now I’ll buy a few per year, and only online.
    Why?
    Spotify. For £10 a month I can get almost anything I want to listen to. If there is something I really want for the collection then I’ll buy the CD. Means I’m not shelling out for dreck (and I’ve wasted a LOT of money on albums which I’ve listened to once and never returned to).

    Yep, HMV are/were irrelevant now.

  11. In all the “Sad HMV is dead” stuff, I don’t think I’ve seen the obvious statement that “music is for the kids”.

    When I was young I spent hours / days hanging out at record shops and spent pretty much all my paper round money on buying vinyl & CDs.

    Today’s youth don’t do that. They do it all on-line.

    Whilst there may be many 40-somethings yearning for their youth spent in record shops, the bulk of the market for the music business is ‘the kids’. Who just don’t do it they way the older lot did.

    And no amount of tax tweaking could change that fact!

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