Hold the Presses, I have The Solution.

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I think we are all agreed that users will share music, TV programs
and movies whether it is permitted or not.

 

Users have become accustomed over the last ten years in
accepting the referral model of their internet peers as to what is hot and what
is not.

 

This has resulted in a new economy. The economy of demand
driven instant consumer satisfaction.

 

This has resulted in record sales of large hard disks,
faster computers and bigger and faster ADSL connections.

So the online economy at least is booming. Including I might
add the content industry that has never before sold so many movie tickets, so
many DVD’s and so many music tracks.

 

Unfortunately, only a very small portion of the entire
entertainment catalogue is legitimately online.

 

The content guys are dragging their heels trying hard to
reconcile the discrepancy between what they are telling Governments and what is
actually happening.

 

Do they know what is actually happening?

 

Well, they don’t want to pay anyone for the statistics, so,
no, they don’t know. And they don’t want to know. Ignorance allows then to
continue rolling out the same old story.

 

Unfortunately, when TV series longevity is now being
determined by the popularity of the free (illegally) uploaded clips onto
Youtube or the torrent downloads of the show via the net, then it’s hard for
even the content industry to continue lying with a straight face.

 

Statements from big six accounting firms like: 

 

According to a recent report by Price Waterhouse, the
Ancillary markets and new technologies have revolutionized profit potential. Over the last decade, ancillary
markets have grown by over 30%. The home video market alone has grown over
200%. The combined worldwide filmed entertainment market will achieve sales of
$118.9 billion in 2009, a 7.1% compound annual growth rate (CAGR).
Source: Price Waterhouse Cooper.

 

Make it a little hard for anyone to feel sorry for the
industry. If that’s hurting, gimme some hurt please…..

 

But the reality is that the industry want their cake and
they want to eat it too.

 

I propose we give it to them.

 

A number of excellent content paying methodologies have been
developed by a number of companies globally. All to no avail.

 

The one that Chris and I like the best is the Canadian model
where a tax is levied on all blank media (including iPods). That appears to be
returning $ 2.37 per Canadian per annum
to the copyright owners.

 

Governments have ignored the content companies ignoring this
solution, obviously because the lobbyists have convinced them so.

 

But what if we apply a tax on downloading – not to the
media. In other words, how does one cent per Gigabyte sound?

 

The average internet user who doesn’t file share or stream
video or music would use about 300 MB of data per month.

The average internet user that does file share can use between
5 and 80 GB per month.

In extreme cases, I have heard of some people using as much
as 250 GB per month for file sharing.

 

I am proposing a one cent per GB levy – fixed for a period
of five years and thereafter increases to be pegged to CPI ONLY.

 

Before you say – woah! Not enough music, movie and content
industry……. Do the numbers.

There are three billion internet users. An estimated 60% share
files regularly.

 

Next year (based on the usage table here)
this would total $133,955,584,000.00
which is more than the entire GP of all of the content industries worldwide.

 

Voila – Problem solved. Government, make it so…..

 

Call it the digital media Tax.

 

Oh and Government, I would really suggest that the payouts be
limited to per country content generation projects. In other words for every
dollar collected, there needs to be a dollar spent by the content companies to
create content within the country of collection.

Not administration. Not consulting. Actual content creation.

 

Consumers:

Before you say no way! The cost per year is around $3.65. That’s
pretty darn cheap. Or to put it another way – where else can you get (over) 365 movies
for $3.65.



Benefits
to Government                

Benefits
to
Industry                       

Benefits
to the Voters

Voters no longer offside                

 

Consumers no longer offside        

No
longer breaking the law.

Increased local content production

Legalised PR Channel

Increased
Content Availability

Revitalised happy economy

Artists and Copyright owners receive vastly increased renumeration

Fake
Files and Interdiction (bandwidth wastage) disappear.

And content company guys, don't panic. 30% of the world won't connect to the internet.

Your CD's, DVD's will continue to have a market albeit, reduced.

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