Adopting a Music Tax Approach

By Chao-Hsuan Wu

We are living in a free download era. Although record companies loss money from CD sales, they can earn money from concerts or diverse merchandises. Record music has become a tool to get people pay for concerts or related products. However, record companies still need find ways to guarantee their revenues. In fact, there is no ways that can totally prohibit illegal download and ensure revenue to music industry. In fact, research pointed out that a choice between downloading a new album for free and paying 5 dollars, only 18.3 percent, or less, chose to pay the 5 dollar. (Arrington, 2008).

Music tax may be an effective way to create guaranteed revenue. If people can pay few dollars, they can download all music and put it into their iPod, Mp3 and their cars. The Songwriters Association of Canada called for a mandatory 5 dollar per month ISP music tax before. Although the idea just began, it may be the solution to solve deficits problems. (Arrington, 2008).

However, some people doubts that the music tax will kill music innovation. Because everyone is asked to pay music tax, less competition in music industry will lead to remove creative innovation. Composers will not be reluctant to pay more time and cost to make good music due to ensured revenue. Besides, if music tax can help music industry get stable revenue, other people could get into the industry to share the market. In the end, music industry still has to collapse or crash. (Arrington, 2008).

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