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Why you'll be paying a 'Netflix tax' soon


Jay

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http://finance.yahoo.com/news/why-you-ll-be-paying-a--netflix-tax--soon-161951515.html

 

Annual U.S. sales of DVDs and Blu-ray discs has fallen from a high of $20.2 billion a decade ago to around $10 billion, according to data from the Digital Entertainment Group, while the Recording Industry Assocation of America reports shipments of CDs fell from $13.2 billion in 2000, to $1.9 billion last year.

 

In response, the city of Chicago is experimenting with having local taxes collected on cloud computing services and streaming music and video. Other state governments like Tennessee and Idaho are experimenting with new taxes as well.

 

 

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The music industry basically did this to themselves by overpricing digital music beyond all reason. One musician (I don't recall who) said that if the price of a CD were in line with production cost (including pay to the artist), the cost would be about $4 each. They also priced compilations of music for artists who at this point get little or no royalties at the same prices as new releases. The music industry also fought against new technology such as file sharing services instead of embracing it and seeing its potential to generate income. 

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Established industry tends to drag it's feet when it comes to new technology...that's why once dominant companies go by the wayside. Xerox, Kodak, Polaroid, newspapers, etc. A lot of the kicking and screaming re: Climate Change is the fossil fuel based industries throwing up roadblacks to protect their cash cows. Eventually green technologies and renewables will win out...but it will be different companies (and countries).

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  • 3 weeks later...

The music industry basically did this to themselves by overpricing digital music beyond all reason. One musician (I don't recall who) said that if the price of a CD were in line with production cost (including pay to the artist), the cost would be about $4 each. They also priced compilations of music for artists who at this point get little or no royalties at the same prices as new releases. The music industry also fought against new technology such as file sharing services instead of embracing it and seeing its potential to generate income. 

 

I remember when new CDs cost almost $20 each. It was ridiculous.

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