France’s Recent Diss of Digital Revolution Will Prove Costly
Ok, so Europe has made it clear they don’t like Google. With Germany threatening to fine users of Google Analytics, France is now tossing around ideas to tax the online giant’s ad revenue, in order to support creative industries…such as authors, film and music producers.
According to a recent article in the France Liberation, the new tax code would end, “enrichment without any limit or compensation.” Wow.
Instead of looking for new ways for creative developers to increase revenue and receive compensation, it seems like the most logical way (in France at least) is to tax the heck out of the industry (the digital revolution) responsible for it’s downfall.
It really shouldn’t even be classified as a “downfall.” The same artists are now utilizing new avenues to be awarded for their work. Most artists are amateurs and willing to place their work on online (for free), to receive exposure…in hope of bringing in some type of revenue through their online properties. Should France wish to cripple the likes of Google and Bing, this will result in a lower payout ad networks are willing to give.
The report goes on to mention, the new tax code would apply even if the company’s office is not located in France…as long as the clicks originate there.
Google Bids France Farewell
In the event Google (or any network is hit with this craziness) wishes to pass the tax onto it’s advertisers, we’ll see a drop in online advertising in France. In turn, this idea won’t raise any new revenue or spur growth in the creative industry…but, will result in a drop for digital business. This will hurt creative artists more than spurring the increase of digital content.
Don’t look at the rise of free content as a problem government regulators have to deal with. Instead, embrace the freedom and opportunity it will bring in the long run. Hence the word, opportunity.
Why do countries pass “Sin Tax” laws on tobacco and alcohol related items? Because these are seen as having a negative impact on society. The more you tax an item, the less favorable it will look.
Dancing With the Devil
The Internet is here to stay. The method in which artists received compensation has gone away. In times past, publishers liked creating scarcity to control the output of content. With the rise of music sharing and content creation taking place horizontally, instead of top to bottom, these people feel the only plausible reaction is to fall back to equilibrium: no free content, take away the voice of artists and have everything controlled by the few.
Thank God this won’t happen.
As Seth Godin likes to say, “Everyone is an Expert.”
