Share
An online download tax proposal intended to compensate the music industry in light of monetary losses connected to piracy and file sharing has met with staunch opposition in Canada this week.
Proposed Internet download tax causes uproar in Canada. Credit: DaveyBot/Flickr.
The proposal in question was put forward by the Songwriters Association of Canada and, if granted federal approval, would see a mandatory $5.00 CAD charge added to every Internet user’s bill in order to cover music industry losses.
The Canadian Recording Industry Association (CRIA), which represents record labels based in Canada, has spoken out against the levy plan, saying that it is impossible to put into action and simply shifts focus from the bigger problem of addressing the continued decline of record sales.
“The more pressing concern is that the industry itself will become distracted by this and precious time and resources will be devoted to either promoting or combating an idea which has a snowball’s chance in hell,” commented CRIA president Graham Henderson in an Ottawa Citizen report.
According to the outlines of the proposal, every Canadian with online access would be charged a flat fee of $5.00 CAD for the unlimited right to download, which the Songwriters Association believes would see up to $900 million CAD per year returned to musicians and music labels harmed by Internet piracy.
Henderson went on to say the Songwriters Association’s plan would essentially constitute a government-run scheme capable of seriously damaging the viability of online music download portals while also existing as a significant threat to the stability of the primary marketplace for records.
Henderson has approached the Songwriters Association regarding the charge proposal and offered his opinions as to why it will not succeed. Successful or not, the fact remains that Canada is in desperate need for a solution to its plummeting record sales.
Since 1999 and 2006, music sales in Canada have nosedived from $1.3 billion CAD to $704 million CAD, while over 80 percent of musicians working in the country presently earn a mere $15,000 CAD per year.
Interested in a more interactive TTH? Join our Facebook Group Want regular updates from The Tech Herald? Follow us on Twitter
Advertising
Comment on this Story