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If all content (all content) was paid for by tax dollars, it would not only be ad free, but there wouldn't be huge companies standing in-between the artist and the consumer as far as getting the artists paid. And it wouldn't cost that much. Like less than what you pay for having all streaming services simultaneously.
https://youtu.be/PJSTFzhs1O4
But imagine the controversy a government would receive broadcasting various kinds of content. People deride the BBC as a mouthpiece of whichever party is in power despite immense work making it as impartial as possible
I think having all art that can find an audience funded this way would help this issue more than hurt it.
And then we get into the weeds of how do we decide who gets grants? I’m a fairly enthusiastic watcher of Linus Tech Tips, and he discusses that the entertainment tax grants the Canadian Government gives out are so complex that only the largest companies (the ones who do not need the grants) can hire people to navigate the bureaucracy for the tax breaks. Is choosing artists going to be an America’s Got Talent competition? A random draw? What source do we get viewer/listener numbers from?
I would love to resume the federal government’s artist programs like under the New Deal, but the reality is that our culture is more niche and divided than ever. Rather than swing and jazz being unquestionably dominant for music in the days of yore, now we’d have to check and verify every SoundCloud rapper, YouTube artist, and pop-megastar.
Some of your questions are covered in the video I linked. Others are kind of indirectly answered.