The Piracy Tax: Why Stop with Music?

Reihan Salam has an article up at Slate now on a scheme proposed by Warner Music Group to “tax” internet subscribers $5 each, right on the monthly ISP bill, to pay for unlimited music downloading privileges/forgiveness. Salam recognizes that some characterize this as “the music industry’s extortion scheme,” but suggests that “it’s not as horrible as it sounds.” As Michael Arrington of TechCrunch argues , the inevitable downside to such an arrangement is likely that it would put the music industry into an even more powerful position to fix prices—why settle on a $5 “blanket licensing agreement” when that could be $7.50? Moreover, why should those who don’t buy or download music subsidize others’ media consumption habits? Nevertheless, Salam reasons that “something like the music tax simply has to happen” because “piracy can’t be stopped”; it’s just too tempting, too mu...