Best of Rock 2008 Photo

BEST PLAN TO SAVE THE RECORD BIZ
Bill the ISPs, Make

File-Sharing Legal


With sales down more than $5 billion since 2000, the record business desperately needs to generate some cash. One of the most radical ideas is picking up steam: Why not have Internet service providers charge customers five to ten dollars a month — and let them file-share to their hearts' content? With an estimated 538 million people using the Internet worldwide, according to Nielsen Online, this cash infusion could float record labels for a long time. "ISPs, telcos and tech companies have enjoyed a bonanza . . . off the back of recorded-music content," U2's manager, Paul McGuinness, said to a roomful of artist managers at an industry conference in January. "It is time for them to share that with artists and content owners."

The idea, which ex-Geffen Records technology executive Jim Griffin has pushed for years, is starting to catch on within the record industry. Warner Music Group has brought in Griffin as a consultant to pursue this plan and others; his proposal involves dumping the ISP-generated money into a pool and splitting it among labels, songwriters and artists.

But will ISPs go for it? "This is not something we're looking at," says a rep for Philadelphia-based cable giant Comcast. And many who oppose the idea refer to it as a tax. "Never gonna happen," says Gary Stiffelman, attorney for Justin Timberlake and Eminem. "There's no motivation for the ISPs to come up with the money. And you think this government is going to pass another frickin' tax for the right to use the Internet?" Still, many in the business can't resist doing the math: If ISPs pay labels ten dollars a month for each of, say, 90 million users, that's $10.8 billion in yearly profit. "It's a great idea," says a prominent artist manager. "Desperate times call for desperate measures." STEVE KNOPPER

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