AfterDawn: News

France music download subsidy gets EU Commission approval

A plan by the French government to subsidize the cost of music subscription services to cut the amount of illegal music file sharing in the country has gotten a nod of approval from the European Commission. The commission must ensure that programs such as this do not damage competition in the marketplace.

Under the scheme, French residents can buy a card to access a music subscription service. The card is worth 50 euros of "credit", but the government will pay half the cost. The scheme is aimed at 12-to-25 year olds. It is expected to cost about €25 million a year, and will run for two years.



"We welcome initiatives ... to increase the availability of music online at a lower price for consumers and through legal distribution channels," EU Competition Commissioner Joaquin Almunia said in a statement. "The scheme will contribute to preserving pluralism and cultural diversity in the online music industry," the EU body said.

Websites that benefit from the subsidy must cut the price, extend the length of the subscription and contribute to the cost of advertising the card system. The benefit for each site will be capped at €5 million.

Written by: James Delahunty @ 13 Oct 2010 1:29

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• 6 comments

• KillerBug

  So then, this is a €25 million a year gift to the record companies and iTunes?

  13.10.2010 02:32 #1

• davidike

  holy crap, the government is going to hand tax monies directly over to big media, WTF?
  
  how could france possible consider this when they are cutting public services left right and centre, raising the retirement age, and other austerity measures.
  
  just shows how much control the media companies have over our governments.
  

  "The public domain is a dicgrace to the forces of evil"
  
  http://www.youtube.com/watch?v=CJn_jC4FNDo

  13.10.2010 02:56 #2

• KillerBug

  Originally posted by davidike: just shows how much control the media companies have over our governments. Just one problem with that statement...you accidentally added the word, "Media" to that sentence, and you called them "our" governments. It should read, "Just shows how much control the companies have over THEIR governments"

  13.10.2010 05:22 #3

• Tristan_2

  I kinda hope the Music Industry doesn't complain on this cuz if you think on it, the Music Industry and Movie Industry complain no matter what the Gov's Do
  

  13.10.2010 10:32 #4

• ROMaster2

  >giving big corporations tax payers money
  
  Did France NOT learn from America's retarded move?

  13.10.2010 14:36 #5

• blaster4

  The French are rioting in the streets because of shortage of money, yet the government is handing millions of Euros of taxpayers' money to the rich media companies, free and absolutely for nothing in return. Is it really credible?

  21.10.2010 18:04 #6