Flat fee hits flat note

It looks like your friendly neighbourhood music industry has come up with yet another scam (sorry, scheme) to keep itself in business - a flat monthly tax on ISPs to cover them for all the music you or I may be listening to for free, added to your monthly bill. It is quite an attractive thought for an ISP, as it de-risks them from an increasingly desperate industry, and no doubt a small premium could be added.

However, it has a fundamental flaw in that it penalises all including non music downloaders, and so is probably a non starter for that reason. Also, there is a large amount of moral hazard, as you are guaranteeing revenue to an industry without any sales needing to occur (or any music being published either...) - the game theory after that will not drive the industry in directions that are good for artist or customer.

My other initial reaction was that it will also make every other industry want to do it as well, as number of amusing commentators on slashdot also noted:

This is quite possibly the worst idea the record companies have ever come up with. I would be very surprised if any ISPs ever give in. I can see it now:

Monthly internet bill:
50.00 - connection fee
5.00 - music extortion fee
5.50 - movies extortion fee
8.25 - television extortion fee
3.00 - print media extortion fee
4.00 - software warez extortion fee
2.00 - images possibly out of copyright
4.00 - independent music fee
3.00 - documentaries fee
2.50 - guitar tabs/sheet music
3.00 - song lyrics
2.00 - spambot fee (just in case I'm a node)
7.00 - fee for everyone else wanting my pound of flesh

total: $100 per month, and I think I'm being quite generous

Where will this stop? If the record labels get their fee, I want my fee for everyone that downloaded that one picture from my blog that I told you that you shouldn't save but you did anyways. You can just send me those $.02 per subscriber per month, or I'll take a flat fee of $3,000,000 - thanks.

The other thing that I noted is that the guy who came up with the scheme has been hired to make it happen, ie the industry is hiring people whose message they are comfortable with (To be fair, he has come up with a wide range of thoughts, but the industry knows what it likes it would seem). However, this is not the way forward, the industry should be hiring smart people who understand new media and are interested in thinking through new, workable options.

Like us for example

That there needs to be a way to pay musicians is clear, free is just not sustainable - but I would prefer to see them paid in some way that is linked to usage. I don't think its impossible or impractical to do that either.

PS if you can just send the fee for Broadstuff reading before you go.....