BizJournals Portfolio
Aug 19 2008 6:07pm EDT

Warner's Griffin Still Pushing ISP Music Fee

Sam Gustin notes that when Portfolio.com reported that Warner Music Group had hired industry consultant Jim Griffin to explore blanket licensing for digital music, the tech blogosphere erupted in protest.

Griffin's idea, to bundle a monthly fee into consumers' internet-service bills for unlimited access to music, was decried as a "music tax" and "extortion scheme," by prominent bloggers such as TechCrunch's Michael Arrington.

Despite the backlash, Griffin is still promoting his idea. Speaking today to the Progress & Freedom Foundation's annual Aspen conference, Griffin argued that while taking music without paying for it may not be "morally voluntary," it has become "functionally voluntary."

Griffin wants the industry to move toward a model in which music "feels free," even if its isn't, practically speaking. The way to do this, he argues, is to create pool of money collected from end-users, paid via a monthly fee to their internet service providers. That money will then be combined into a large pot and then distributed to rights-holders.

In return, users would have unlimited access to a vast collection of music.

Despite seemingly widespread opposition to the idea in the U.S., similar models have begun to gain acceptance in Europe.

As the music industry continues to search for a way to navigate the transition to the digital world, it may be only a matter of time before Griffin's plan begins to gain traction in the U.S.


Laura Rich is a co-founder of Recessionwire, which provides news, advice, perspective and humor about the recession and the recovery.
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