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July 24, 2008 |

Music downloaders facing annual tax – Idea attracting growing support

By Dave Parrack





Music downloaders facing annual tax - Idea attracting growing supportHow would you feel about paying the music industry a sizeable figure every year, just on the off-chance that you download some music from the Internet occasionally? Think it’ll never happen? Then read on, as the idea is gaining support from all quarters… although the inherent problems with any such system may never be solved.

Back in March, I wrote an article discussing the idea for a compulsory music tax to be paid for monthly through ISPs. This tax would be payable by everyone, and cover the music industry’s supposed loss of earnings from the illegal trade in music over the Internet. It wouldn’t just target those guilty of sharing copyrighted music illegally on the Web though, but every single person hooked up to the Net.

The idea first gained publicity from the likes of Peter Jenner and Trent Reznor arguing the case for it, then Warner Music was the first of the big record labels to also add its weight to the case for it to become reality. And now, according to The Independent newspaper, British Government ministers are also backing the proposals, although most of them probably don’t understand the concept.

The British Government has already started waging war on illegal downloaders, with Virgin Media customers suspected of the crime, receiving letters from the BPI (British Phonographic Industry). But in the longer term, Andy Burnham, the current Culture Secretary is supporting calls for the global music tax to come in to force.

The figure needed to make this a reality would be $60 (£30) a year, which would equate to $5 (£2.50) from everyone signed up to an ISP. This would raise an estimated $20 billion for the music industry, which in turn would create a giant online database for everyone to download music from freely, and legally.

It’s a nice idea, and one which I have come to regard as not quite as potty as I did when I first heard it. However, there are some huge hurdles still to overcome.

First, you have the fact that with every artist receiving an equal share of this Internet music fund, where is the motivation for innovation? Also, why would bestselling artists agree to be paid the same as struggling artists, who in the real world only sell a few albums to a very niche audience?

If this ever did come to fruition, it would also potentially kill off the rest of the music industry, with CD sales dropping off to nothing, and the charts being a thing of the past. Then there is the obvious problem of how to organise such a scheme, and who to put in charge of it all.

This could be the solution to a problem which is crippling the music industry, but I can’t ever see it happening, no mater how many record companies, and Governments think it’s a good idea.

Related:

  • UK Music – A new anti-piracy umbrella to replace all the others
  • The Charlatans follow Radiohead’s example, fight labels, love free music
  • Digital music sales increase not enough to offset overall losses
  • Should P2P music sharers lose their broadband?
  • Sony ditches problem child ATRAC audio format




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    One Response to “Music downloaders facing annual tax – Idea attracting growing support”

    1. Joshua:

      I don’t see how this helps at all. what about those like myself, who do not download music, but only buys CD’s from the stores. I use the internet for my business. So, too me, if they did this, in my mind, they would be legalizing downloads from the internet. I my as well download my $5 a month worth of illegal music, to make it worth while for me. $5 may not be a lot of money for some people, but for me, that is my breakfast and lunch!

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