Digital 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.








1. This is absolutely ridiculous! I love my digital PVR and having to pay tax on something else in this already overtaxed country is ludicrous. While we're at it let's tax video recorders, dvd recorders and don't forget cassette recorders.
I don't understand why the entertainment industry refuses to let people enjoy new technology, allowing consumers to use it to their advantage. They don't seem to have a clue and are more concerned about squeezing every last penny from consumers rather than actually offering us something new and generating more revenue from that. Don't they realise that before I bought a PVR I hardly watched any television, now I watch it much more often and i'm sure this is the case with a lot of people who've just discovered PVRs.
Posted at 9:52AM on Jan 19th 2006 by Ben