The Five Dollar Music Tax Ought to Be Voluntary

March 28th, 2008, 9 Comments »

Everybody seems to be up in arms over the music industry’s new proposal for a new American tax to save their industry. The always-raging Michael Arrington leads the charge:

Good musicians will always find a way to make money. Others may have to follow their passion as a hobby and (shudder) get a day job to pay the bills. But if a music tax is put in place, that innovation will die, and with guaranteed revenues and profits, the need to innovate, market and compete will also die. A music tax is a sure fire way to destroy an industry that is just beginning to really blossom.

The tax would allegedly be $5/month, charged by all participating ISPs. I imagine that it would become buried in your monthly internet bill, much like the private copying levy is embedded into the price of Canadian iPods, hard drives and recordable media. While technically you might be able to seek out an ISP that isn’t participating in the program, the industry would goad, bribe, sweet talk or sue dissenting ISPs into a more agreeable stance.

As Arrington points out in a subsequent post, the plan is basically a “covenant not to sue anyone who pays the fee”.

The idea of a $5 a month tax isn’t new. In fact, the Electronic Frontier Foundation proposed a very similar approach three years ago. The only difference is that their levy would be voluntary:

The concept is simple: the music industry forms a collecting society, which then offers file-sharing music fans the opportunity to “get legit” in exchange for a reasonable regular payment, say $5 per month. So long as they pay, the fans are free to keep doing what they are going to do anyway—share the music they love using whatever software they like on whatever computer platform they prefer—without fear of lawsuits. The money collected gets divided among rights-holders based on the popularity of their music.

I still think artists ought to be paid for their work (heck, I made a website about it). Would I pay $5 per month to get complete access to all music ever recorded, avoid prosecution and forget about the phrase ‘traffic shaping’? In a heartbeat. I already pay eMusic $15 a month to download 50 songs from a comparatively small archive of 3 million. Such a tax like this would be a discount.

Just as the Canadian levy is applied to a lot of consumers who have never illegally downloaded a song, a de facto mandatory tax will punish the many for the actions of the few. The music industry ought to make this tax voluntary, and take what they can get.

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Lazy Journalism is a Major Pet Peeve

November 22nd, 2007, 13 Comments »

I just wrote a letter to the editor of the Malta Times, pillorying Fiona Galea Debono for some dodgy reporting. She wrote a profile of Maltese singer Ira Losco (she covers The Cure’s “Love Song” on her MySpace page), and introduced the subject of music piracy:

The DVD will be available from leading record stores and off her website… but, sadly, probably also from the marketplace at a fraction of the price.

Indeed, piracy is a scourge that even Ira has to contend with; it is destroying the industry and makes her blood boil.

Ira sells well and not enough fake CDs are printed to hurt her, so she need not devise a strategy to counteract piracy - in the same vein as international stars, who are basing their earnings on live performances. But it is still an irritating issue.

Do you get the feeling that Sony set up this interview, and told Ms. Debono (and/or Ms. Losco) to dedicate a few column inches to the piracy issue? Here’s my letter:

Dear Sir:

Ms. Debono’s profile of Ira Losco read like a thinly-veiled propaganda piece for the record industry. Despite music piracy not impacting Ms. Losco, Ms. Debono introduces the subject into her article and claims–without citing any evidence–that it’s “destroying the [music] industry”.

This simply isn’t true, and it’s lazy, shoddy journalism to claim otherwise. There are many reasons for the downturn of the music industry–declining radio listenership, free music via the web (YouTube and such), diverging audience tastes, the missed opportunity of legal file sharing, rising video game and DVD sales and so forth.

Besides, a recent independent study comissioned by Industry Canada indicated that file-sharing doesn’t put downward pressure on purchasing music. In fact, fans who download music tend to buy more.

According to Simon Wright, CEO of Virgin Entertainment Group in Rolling Stone magazine, “The record companies have created this situation themselves.”

Here’s a lesson for Ms. Debono: I’ve just built an argument based on considered supporting evidence. Perhaps she’ll try this approach the next time she wants to trot out hollow, deceptive claims

Every time a journalist (or a blogger or whoever) mindlessly parrots a corporate party line, it lessens the profession.

13 Comments »