Warner Music pushing music tax?

Jim Griffin, Warner Music GroupThe tech and finance sites are abuzz with news/discussion about Warner Music Group’s having hired industry consultant Jim Griffin to promote his plan to force internet service providers to charge a fee to all internet users for music rights. The idea is to assess a $5 monthly fee on all internet access accounts which would go into a fund for distribution to license holders. Those paying the fee would have access to a database of all digital music online, at no additional charge.

Some call it a music tax, others a piracy surcharge, and battle lines are being clearly drawn. In an interview with Conde Nast’s Portfolio.com, Griffin shares the label’s perspective.

“Today, it has become purely voluntary to pay for music,” Griffin told Portfolio.com in an exclusive sit-down this week. “If I tell you to go listen to this band, you could pay, or you might not. It’s pretty much up to you. So the music business has become a big tip jar.”

Nothing provokes sheer terror in the recording industry more than the rise of peer-to-peer file-sharing networks. For years, digital-music seers have argued the rise of such networks has made copyright law obsolete and free music distribution universal.

Bronfman has asked Griffin, formerly Geffen Music’s digital chief, to develop a model that would create a pool of money from user fees to be distributed to artists and copyright holders. Warner has given Griffin a three-year contract to form a new organization to spearhead the plan.

On the other side, TechCrunch’s Michael Arrington calls it The Music Industry’s New Extortion Scheme:

Asking the government to prop up a dying industry is always (always) a bad idea. In this case, it is a monumentally stupid, dangerous, and bad idea.

If this happens, it will put an end to the endless creative/destructive energy that is reshaping the music industry today. 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.

Yes, blossom. As terrifying as these days must be for music industry players, it’s clear that a golden age of creativity and innovation is ahead of us, all led by the Internet as a nearly perfect distribution mechanism for their product. Music labels must die. Hopefully, before they do any more damage.

Before bluegrass/folk/acoustic songwriters and artists get excited about this proposal, keep in mind the way that blanket royalty fees have been distributed in the past. A club that featured bluegrass music exclusively would pay fees to the publishers’ unions, none of which ever made its way to bluegrass writers or performers.

Read more on Portfolio.com, TechCrunch or Wired.com.

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About the Author

John Lawless

John had served as primary author and editor for The Bluegrass Blog from its launch in 2006 until being folded into Bluegrass Today in September of 2011. He continues in that capacity here, managing a strong team of columnists and correspondents.

  • This idea is absurd!

    I am a big supporter for not stealing music and I have convinced a few of my friends to start purchasing as opposed to downloading or copying their friends CD’s.

    As much of a proponent as I am for anti-piracy however, I believe this idea is absolutely ridiculous! What about people like me or say, my mother who never downloads music? Believe it or not, there are many people that use the internet for things other than downloading music! Why should these people pay a $5.00 music tax? In that case, what about my failing business? I think everyone should pay me $5.00 a month to keep my business afloat.

    In general, I agree with the statement

    Today, it has become purely voluntary to pay for music

    but that doesn’t mean you can punish the whole population. I know, the number of people pirating music is in the hundreds of thousands, but an assumption is being made that EVERYONE is stealing music.

    Although it is not at all right to steal music, many would argue the internet has helped more artists than it has ever hurt. Downloading music may look like lost sales, but many say more music is being sold as a result of the masses being able to hear artists they would never have listened to previously.

    I have also heard reports of concert attendance being much larger than ever before as well. If this is true, it could be argued that lost music sales on physical media is more than compensated for by touring artists. i do realize however, taht not all artists are in a position to tour, especially if you are just trying to get your foot in the door of the music business.

    I’m not a big proponent of “boycotting” because it generally doesn’t work. For example, when gasoline prices sky-rocketed there were boycott schemes for the world to stop buying gas on a certain day. Well that doesn’t work because you’re simply going to buy gas on the following day instead. How does taht hurt anybody?

    If this tax ever becomes a reality, I would suggest a boycott by the general population against internet service providers. That’s right – cancel your internet account. You need to sacrifice something to effect change. If the masses cancel their internet accounts and are willing to sacrifice for a while, you can bet your bottom dollar the tax would be removed. Not only would ISP companies suffer, but everyone that does business on the internet. And yes, you will temporarily suffer as well.

    The internet is a huge convenience and a pastime for most of us. How many of us need it to survive? Not too many! Would you be willing to “suffer” for a short while? Like all boycott ideas, it would do absolutely no good if only a handful of people would be willing to make a sacrifice, but if the general population would do it, I guarantee you would see a change – and in a big hurry!