France looking to tax ISPs to raise funds for music industry

The World Wide Web has become more than just a gateway to information for many people. Aside from allowing users to manage their communications, the Internet is also quickly becoming a hub for entertainment. People who play video games can now enjoy playing their favourite games on their laptops or computers using subscription services like OnLive. Aside from gaming, there are also many entertainment subscription services being offered that allow users to stream movies, television shows, and music to view and watch at their convenience.

While there are many legal services, there are also illegal ones that have cropped up. Instead of signing up for a subscription, some users instead opt to download music files illegally via file sharing programs or sites. This has been a huge problem over the years and continues to give media companies and firms a headache.

The music industry in France, to be specific, is continuing to struggle. And in an attempt to raise more funds for that sector, French President Nicolas Sarkozy is going to be taxing Internet Service Providers (ISPs). This announcement was made during a speech the president made in Avignon during a culture confab that was attended by other European politicians.

Aside from the ISP tax announcement, Sarkozy also expressed his desire to extend the country’s anti-piracy regulation, Hadopi, to online streaming services as well. The speech came after a proposal was sent to the Minister of Culture Frederic Mitterand for the tax and creation of the Centre National de Musique last September.

Taxing ISPs for the benefit of another industry might seem strange at the outset, but this isn’t the first time that this has been suggested. The Zelnik report, which was released last year, made proposals on taxing online ads and ISPs, where the proceeds would then be used for “special cards” that would be distributed to the French public so they can access “legitimate content.”

On Hadopi, Sarkozy noted that piracy in France had gone down by 35% since the introduction of the three-strikes policy. However, since the law was put into place, the growth of faster broadband and developments in streaming technology has given rise to new piracy threats in the process.

Source – PaidContent