We all know about the debates over the BBC licence fee. The argument splits into two familiar polarised camps. The Pros cite lots of worthy stuff about Lord Reith and public duties. The Antis mix free market economics with naked self interest. It's all as British as tea and crumpets.
What neither camp has spotted yet is that a major technological consensus has been bubbling up over the last year or so which promises to cast the licence fee in a totally new light. The great news for the BBC is this - far from the licence fee being a geriatric institution struggling for relevance in the 21st century market society, it is actually the premier model for the future of the media industry.
As with so many huge changes in media, the story starts with P2P. As the barriers to obtaining anything you want for free continue to crash downwards, media companies and governments around the world are busily trying to put them up again. Typically, this arrives in the form of tougher punishments for file sharing, new technologies to prevent piracy, and laws to ban the circumvention of copy protection.
As we all know, it will mostly fail. It will fail technologically because there will always be more public circumventers than corporate programmers. It will fail politically because the public will eventually tire of the criminalisation of all their friends and families. And most important, it will fail because in economic terms the ICT industry is hugely bigger than the combined size of all media companies. The technology industry has to respond to its customers, and the customers are going to be very clear about their desire for systems that continue to allow P2P. Certainly, DVDs will continue to sell, and wealthier people will pay to download music. In the end, though, "You can't beat free".
This won't happen straight away. There will be two or three complete legislative and technological cycles before the the cracks in this system blow the whole structure apart. Punishments will get stiffer and more desperate. Those caught in the crossfire (companies, artists and consumers) will suffer worse than ever before.
But eventually, the only sustainable economic model for funding media companies will win through. It isn't a work of genius, it isn't top secret, and it isn't even new. Lots of people at the thoughtful edge of the intellectual property debate have already concluded the same, from the EFF to prominent academic lawyer Lilian Edwards. It has already been demonstrated to work through the wildy popular Japanese iMode system, and partly by our own telecoms system.
It is, of course, flat fees on internet access. Call it a tax, a levy, a fee, or a licence, it all comes to the same thing. A once monthly, or yearly sum is charged at the point of access, and money is disbursed to different media companies & content creators depending on the popularity of their works. The political and technological challenges are certainly huge, but the non-viability of other models is what will drive it to win in the end. Just as Churchill said "Democracy is a very bad form of government. Unfortunately all the others are so much worse", so the flat fee will triumph, despite the barriers to getting there.
So finally, back to the BBC. The licence fee, so creaky and antiquated in the World of Sky suddenly looks very different. It looks far more like the world's best example of a mandatory flat fee for media. It looks like the world's best example of how to distribute a single financial pot between different media creators. It looks like how the whole net will work.
Whoda thunk?
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