Thanks Tom and Russ.
I've spent so much time on this and become so frustrated, I asked for a refund but the staff at the support centre refused.
I got the following response this morning...
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My name is Stephanie and I am a Senior Advisor with iTunes Store Customer Support. Princess has forwarded your request to me for further review.
I see that you are requesting a refund for the app "Compressor", as it does not function. I can certainly understand your concern and will be happy to look into this for you.
I've looked into this for you and upon researching your account I discovered this app was originally downloaded on 8/24/2011. While we are able to assist with purchases, and in certain situations can repost a lost item or one not working correctly, we recommend that our customers notify us as soon as possible from the original purchase date. Our ability to resolve any issues or assist with recover diminishes greatly with time.
You request for a refund for "Compressor" was carefully considered; however, according to the iTunes Store Terms of Sale, all purchases made on the iTunes Store are ineligible for refund. This policy matches Apple's refund policies and provides protection for copyrighted materials.
If you have any further questions about your iTunes account, please don't hesitate to contact us. Have a great day!
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Have a great day indeed.
Myles