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March 29, 2008

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Comments (8)

I found the Andrew Cash article in Now to be a fairly persuasive argument in favour of the Mandatory Monthly Fee. Of course, the government would have to take an active interest in regulating it so that, among other things, the price couldn't climb beyond the rate of inflation, but—if done properly—I think it's a good solution.

 

Jonathan, are you really endorsing the concept of allowing the private sector to levy taxes?

 

I'm actually planning to pitch NOW to let me write a counter-point article explaining why we should be passionately against any kind of mandatory fee. I think you're a really smart guy, Jonathan, and so your comment reinforces my belief that I need to stop procrastinating and get to work.

While linking to another post might be weak, Michael Arrington (who I frequently disagree with) has done an excellent job of summarizing why a mandatory tax is extortion. It is the dying gasp of an industry that is trying so hard to justify its continued existence, that they are hoping the governments will prop them up.

Like that article says, it is too late to start charging people for what they can get for free. That they have managed to confuse well intentioned and intelligent individuals into projecting their loyalty to the bands they love on to the very same corrupt labels that have oppressed them for decades in the first place is a travesty. We are being had.

If you love a band, copy their album for someone every day. Don't you get it? We are what comes next after the music industry dies, because music shouldn't even be an industry.

 

"Illegal music downloading has been a hot topic for almost a decade now...."

I assume you mean in the US; it's not illegal in Canada. Stop letting the RIAA and its Canadian sockpuppet (CRIA) phrase the debate here. It's not illegal, period.

Don't forget: "Home taping is killing music."

 

I wrote about this the other day. The main problem is that there's no ability to opt-out, that's a complete deal-breaker and that's what makes it a tax.

The other main problem that spins off that is the precedent. How many other private industries will want to levy taxes because of competition with the Internet? How many other taxes would we have to pay?

Plus, copyright wasn't designed to garner fees from everyone. It was designed for the age of the printing press, and adapted to the broadcast age. In both cases, there were few broadcasters and distributors and they were large. Now, anyone can be a broadcaster or distributor. It doesn't work anymore, and it won't.

I don't believe any system needs to be designed. People who recognize the digital nature of music (i.e. infinite supply) and leverage it as a promotional tool for scarce goods (their time, embodied recordings, concert tickets, etc) are still making money, as you noticed. What's required is a shift in business models, not a government subsidy.

 

You're right, Rek, in both that I was referring to the situation in the United States and that it is legal in Canada. Still, the situation of illegal music downloading in the States is what drives the discussion in Canada.

Good clarification though.

 

I would hope a manditory fee would be a non-starter, but then I realize we've already got a blank CD/DVD tax. Has any of that money ever gone to artists? Does anyone really think this $5/month fee will be any more fairly redistributed than profits are the industry now? Aren't most reasonable people going to be seriously pissed off about the manditory fee?

Ultimately I think we'll end up in a situation... pretty much exactly like we've got. Purchasing music will effectively be a voluntary act. "Features" like a lack of DRM will hopefully become the norm as the cost to develop & implement it outweighs any perceived benifits.

I would also expect to see more and more licensing options as the industry seeks out alternate revenue sources. Imagine budget licensing deals where you can acquire affordable rights to a song for a independent movie or videogame, or even for a video you want to use on the web. Give those would-be customers some more options. Make it really easy, and standardized - through iTunes or Amazon or wherever. Everyone's a content-creator these days, no?

 

Jonathan: Why should a private corporation be entitled to a guaranteed stream of revenue? You work on the assumption that the monthly would end up in the pockets of the artists.

How much of the CD levy has been paid out to artists? How much of the money the RIAA has won in the US has been paid out to artists?

And naturally, the fee would be accompanied by more government regulation. Yup the same type of government regulation that has created mess in the ISP sector with Bell and Rogers screwing over customers and other ISPs because of some outdated belief that Canadian ownership should trump competition.

 
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