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Pact wants service providers to pay royalties on PVRs


Tax on PVRsDigital Spy reported yesterday on a major report commissioned by the U.K.'s independent trade association Pact (Producers Alliance for Cinema and Television -- not to be confused with FACT, the Federation Against Copyright Theft) which has called for service providers to pay a flat royalty for every PVR-equipped home they provide video services to.

The report, titled UK TV Content in the Digital Age: Opportunities and Challenges and compiled by Oliver & Ohlbaum argues that PVRs "deprive both commissioning free-to-air broadcasters and producers of a fair share of the value generated by the re-use of their originated programming." Effectively, they're talking about taxing your PVR.

I can accept that this might be the case for VOD services, where users can repeatedly access a particular segment of video across the so-called broadcast infrastructure (such as a cable TV service, or a broadband service), which would generate income for producers if it was a repeat broadcast.

However, it can't possibly be true of a stand-alone PVR that records content in the same way as a traditional VHS recorder from a broadcast source; they're confusing the purpose of the device with the technology that enables it, and starting down the line of taxing VOD services will only lead to a tax on PVRs.

Broadcasters, studios and content makers already make plenty of money from the sale of broadcast rights, repeat broadcast rights and syndication -- not to mention DVD sales (and now pay-per-view downloads) -- but it seems nothing short of greed to demand another slice of the pie, and the person who will ultimately suffer is the end user, who will end up footing the bill when the providers pass on the fees.

All this does is set out the case for more stand-alone services like TiVo, where the user relies less on the service provider to offer an all-inclusive package, and hands the technology manufacturers a bigger incentive to create solutions that operate independently of the commercial interference and top-slicing of media studios and broadcasters.

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