James Delahunty
13 Oct 2010 1:29
A plan by the French government to subsidize the cost of music subscription services to cut the amount of illegal music file sharing in the country has gotten a nod of approval from the European Commission. The commission must ensure that programs such as this do not damage competition in the marketplace.
Under the scheme, French residents can buy a card to access a music subscription service. The card is worth 50 euros of "credit", but the government will pay half the cost. The scheme is aimed at 12-to-25 year olds. It is expected to cost about €25 million a year, and will run for two years.
"We welcome initiatives ... to increase the availability of music online at a lower price for consumers and through legal distribution channels," EU Competition Commissioner Joaquin Almunia said in a statement. "The scheme will contribute to preserving pluralism and cultural diversity in the online music industry," the EU body said.
Websites that benefit from the subsidy must cut the price, extend the length of the subscription and contribute to the cost of advertising the card system. The benefit for each site will be capped at €5 million.