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Movie and record labels are overjoyed at the support they're receiving from the British government

Late in October DailyTech reported on the new three strikes piracy legislation proposed in the United Kingdom by Britain's majority Labour Party.  Under the legislation those caught pirating would receive two warnings, then would be cut off from the internet.  The real headache, though, is how to police the traffic and enforce the provisions on ISPs and consumers.

Despite mass objections from telecoms, citizens, electronics experts, law enforcement officials, and members of the minority conservative and socialist parties, Labour Party officials have blazed ahead with a framework to allow the legislation to be enforced.

According to Labour Party leaders, the government is planning on handing the expense of the Digital Economy Bill down to taxpayers.  That expense is estimated to be approximately £500M (approximately $800M USD).  On average, that works out to more than £25 more a year ($40 USD/year) per internet connection.

And that's considering that the government is counting on the bill reducing piracy enough to increase media revenues by £1.7B ($2.72B USD), leading to £350M ($560M USD) extra in VAT tax revenue.  If that increase isn't realized, British taxpayers could find themselves on the hook for over $1B USD in enforcement expenses.

The initial letter writing campaign is predicted to cut off 40,000 citizens from the internet and cost £1.40 ($2.20 USD) per subscription.  The government appears to have purposefully neglects to include possible economic losses based on citizens being taken offline in its estimates.

Charles Dunstone, chief executive of Carphone Warehouse, whose subsidiary TalkTalk is the biggest consumer provider of broadband in UK, is flabbergasted at how the punitive bill is gaining so much traction.  He states, "Broadband consumers shouldn’t have to bail out the music industry. If they really think it’s worth spending vast sums of money on these measures then they should be footing the bill; not the consumer."

Still the media industry is cheering the British government's decision to obey their commands, despite the taxpayer expenses and objections.  Writes the Department for Business, Innovation and Skills, an industry trade group, "The overall benefits to the country far outweigh the costs."

They argue that movies like X-Men Origins: Wolverine and Star Trek have been pirated millions of times, amounting to millions in lost revenues.

And it certainly helps their argument that in the UK, like in the U.S., the media industry spends enormous sums on legal representation and government lobbying efforts.  As the growing conflict in Britain is proving, if there's one lobbyist power in the UK and U.S. that's perhaps greater than telecommunication firms, it's the media industry trade groups.




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Lost revenue from lost sale
By Navvie0 on 12/29/2009 4:19:07 PM , Rating: 5
Boo hiss you pirate scum, you are no comrade of mine.

How dare you not purchase high quality products like x men origins wolverine. Fox have spent a lot of money on this film, and you guys have a duty to buy it or they will have lost revenue!

Never mind that the film wasn't very good, they have a right to make money and we have a duty as comrades to purchase it.

I for one support the Digital Economy Bill, our industry champions deserve to be able to pump out poor quality radio friendly unit shifters that we all must buy.

If comrades are not doing their duty and supporting our superlative industry companies, then as a good comrade I am willing to pay a £25 per year tax in order to keep them all in business. So they may continue to produce low quality products like x-men origins wolverine for us all to enjoy. (Or not seeing as many of you have failed in your duty to purchase this product from our glorious industry leaders.)

Further, I demand that governments worldwide introduce legislation banning all media and world wide websites from giving less than a 100% score to any product they test.

If a product is reviewed poorly by the reviewer and this information becomes common knowledge it will do unspeakable harm to our heavenly industry! The magnificent industry will lose sales and lose revenue. Never mind that the product isn't any good, it is simply not acceptable for our superior industry companies to not make money from us.

I have just had a marvellous thought comrades! Why should the sacred industry produce anything at all? Surely their revenue will increase more if we simply hand over our tax money? That is a splendid idea indeed.

Please consider carefully what I have written and learn well the teachings of our most praiseworthy unelected leader, Comrade Mandelson. This is the one true way and we will all be better for it.

--
Comrade Navvie0




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