Politicians Vote To Kill Internet, Radio

Michael Hedges April 12, 2010 - Follow on Twitter

The UK Parliament passed (April 7) the long awaited Digital Economy Act (DEA), presumed to stimulate economic activity in and around the digital realm. Even the manner in which it was threaded through the political needle reveals more about ‘act’ than ‘digital’ or ‘economy.’ It’s the reason politicians and bankers are held in such high esteem.

The community of internet users, internet watchers and internet operators felt most bruised by the DEA, not to be confused with the US Drug Enforcement Administration formed during the notorious Nixon administration. Under the new DEA, internet access can be severed if that access may have breached a third party copyright. On the surface it targets illegal downloading. The depth, however, is chilling. Alleged illegal downloaders are presumed guilty. Websites can be blocked.

Music industry and other content rights holders were predictably delighted. “The UK’s music industry has no urge to look backwards,” said UK Music chief executive Feargal Sharkey in a statement, “and, as we have consistently stressed, legislation is not a means to an end. It is a spur to action.” UK Music represents songwriters, record labels and artist managers.

“For too long, this illegal activity has been threatening the livelihoods of thousands of workers throughout our sector,” said a statement from the Creative Coalition Campaign, representing creative sector trade unions.“Only with this protection will the UK’s creative industries be able to continue to invest in the TV programmes, films, books, sporting events and music which are loved by millions across the UK and throughout the world.”

At the other end of the dial, internet freedom advocates were outraged. “Parliament does not need to protect, or even encourage analogue-age business models if it wants a Digital Britain,” said the Pirate Party UK in a statement. “They must either engage with new technology or suffer the consequences, as with any other business. This is an adapt-or-die situation: the struggling sectors of the content industries have failed to conform to the digital revolution, and should not be rescued for clinging to their antiquated business model.” The Pirate Party UK is related to the internet freedom protest movement spurred by the outlawed Pirate Bay bitTorrent download website operating from Sweden.

That worked out well for the music business in Sweden. Initially internet traffic in Sweden fell by about one-third after Pirate Bay was shut down. Then hardcore downloaders – hackers at heart -  moved to encrypted websites. Music industry revenues actually fell further. Consumer analysts in Sweden suggested that lawbreaking music downloaders are probably the music industry’s best customers, checking out music tracks before they buy.

"This is an utter disgrace,” said Open Right Group executive director Jim Killock in a statement. “This is an attack on everyone's right to communicate, work and gain an education. Politicians have shown themselves to be incompetent and completely out of touch with an entire generation's values.”

Politicians have, however, shown themselves completely in touch with important constituencies; rights holders, high-tech developers and, of course, Rupert Murdoch. “As both a major investor in content and an ISP, Sky is uniquely placed to understand the interests of rights owners and customers,” said a spokesperson quoted in the Telegraph (April 8). We treat piracy very seriously and want to support rights owners in safeguarding copyright, as we do ourselves. We therefore welcome the government's commitment to underpin the fight against illegal file sharing through legislation, as outlined in the Digital Economy Bill.” Sky is principally owned by News Corporation. Mr. Murdoch has announced plans to build pay-walls around everything.

"The passing of the Digital Economy Act in the UK recognizes that if a country is to have world-class creative industries, then it also needs laws that will effectively protect their rights from the crippling problem of digital piracy,” said the International federation of the Phonographic Industry (IFPI) in a statement. “The new UK legislation is a decisive step towards dealing with P2P and other forms of illegal distribution in a way that can substantially reduce the problem. Most importantly, it recognizes that internet service providers have an essential role to play in curbing online piracy and reducing infringements on their networks". IFPI led the legal charge against Pirate Bay.

Digital radio also figured in the so very brief debate on stimulating the UK’s digital economy through legislation. Consumers, thoroughly confused about whether or not jail time is imminent because grandma downloaded a couple of old movies, will be less inclined to run out and buy a new DAB receiver, preferring to wait until something actually happens. UK media regulator OFCOM, which will see its complaint handling workload increase, may set a digital switchover date for radio sometime after receiver penetration hits 50%. Incumbent broadcasters will get a free-pass on analogue license renewals, at least until the end of the decade, so long as they continue to profess love for DAB. Doing something about it is another matter.

“The quid pro quo promise to develop DAB radio will never come to fruition,” writes UK media analyst Grant Goddard in his blog. (Read his review of the DEA’s effect on UK radio here)  "Now that Global Radio has got what it wanted, over the coming months, the radio industry’s commitment to continue with DAB will inevitably be rolled back. Every excuse under the sun will be wheeled out – the economy, the expense, the lack of industry profitability (having spent nearly £1bn on DAB to date), consumer resistance, the regulator, the Licence Fee, the government (old and new), the car industry, the French, the mobile phone manufacturers, whatever…”.

The DEA Bill now passes back to the House of Lords for a cursory vote. Sometime within the next year, language tidied by both Houses of Parliament, the European Commission will take a look. That could be embarrassing as the EC has taken a dim view of the French “three-strikes” law that intends to block users internet access without judicial review.

Resoundingly, those pleased with the DEA come from the entrenched and entitled. Those groaning are, mostly, the young, entrepreneurial and restless. Consumers will continue to vote with their feet.

Meanwhile, back to the future. Europe’s first 4G spectrum auction takes place in Germany (April 12). 4G is ultra-fast mobile broadband using the LTE or WiMax standards. Virtually everything in the UK Digital Economy Act becomes obsolete when 4G power arrives.

See also in ftm Knowledge...

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