UK Music Trade Supports Copy Tax plus a Commentary
Ripping your CD onto you iPod is a crime in the UK. But as is the practice globally, most people do it; and a recent survey showed that 88% don’t even know they
are breaking the law. Proposed legislation would decriminalize the practice, but a
coalition of major industry groups including AIM, BPI, The Manager’s Forum and the Musicians Union are backing a tax to compensate for what they see as a loss in income. A summary of their logic:
•
there is a value produced by the ability to format shift for both consumers and commercial enterprises
• it is imperative that creators and performers should benefit directly from
this value
• the only solution which achieves these goals is a "flexible and market-led approach based upon a business-to-business relationship"
The position paper (pdf) does not propose a specific fee or percentage leaving it "subject to commercial negotiations".
COMMENTARY –
Unless they embrace the opportunities provided
by the internet rather than fighting the challenges, the music industry
will remain in decline
Sadly, this is another example of how far behind the consumer the music industry is. While the tax would presumably be on portable players rather than individual copies, the effect…
and message for consumers is the same: "We’re losing
money; so we want you to pay more for the privilege of enjoying
music." This is the same flawed logic that turns fans into criminals,
drives them toward Pirate Bay and flames their distrust of the
entire music industry.
The internet has created huge challenges for music, but it has also created new opportunities:
- music creation and distribution is far less expensive
- marketing is now in the hands of the many instead of the few
- new products and revenue models can be tested quickly and cheaply
Unless they embrace the opportunities provided
by the internet rather than fighting the challenges, the music industry
will remain in decline. Clearly, a copy tax levied on iPods or anywhere is a major step in the wrong direction.
So exactly what opportunities offered by the internet would you have young aspiring artists embrace? If the only model in town is that all music is free how exactly are artists to be recompensed? I am not talking about labels here, either major or indie, I am talking about artists making a living after selling the first copy.
Sure the internet does what you say it does but how can you test new models when the alternative is free?
Anyone who uses an MP3 file is paying the original creator of the MP3 file a license fee. They just dont know it.
Whats so wrong about music creators getting paid as well?
Jon Webster
CEO
Music Managers Forum
London
Thanks for your comment Jon. But I do not believe in free music accept as a limited promo tool.
Am I wrong or has not the justification for this tax has been that people should not be allowed to make a copy for their own use without paying. I don’t think that’s been a reasonable expectation since the dawn of the cassette.
I also believes it sends a message to fans that gives them more room for “a screw the music biz” attitude that they use to justify heading to Pirate Bay.
If a band really connects with fans, they can find ways to monetize that relationship -gigs, merch and yes music sales and more. Its hard to believe that taxing those same fans for copying the CD they bought onto their iPod is not the answer.