New Trade Group Sees Cable As Model For Online Music Sales

In a novel move, the new Distributed Computing Industry Association (DCIA) s seeking to turn the emerging online music download business into the latest version of the cable TV business.

Similar to the tried-and-true cable video business model, the DCIA’s proposed economic model calls for imposing a flat universal subscription fee of about $5 a month on all broadband subscribers who use music file-sharing software. For this fee, broadband consumers would receive access to basic music content. Music rights holders would reap most of the revenues, but the broadband ISPs and P2P software firms would also share in the bounty.

The model then envisions levying optional pay cable-like fees for special packages of broadcast-encrypted genre-and-theme music channels.

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