In Germany, we just pay a fee on new media (SSDs, thumbdrives, phones, HDDs, blank CDs and DVDs, etc) which is given to the record companies and shared between the content creators.
Otoh, you are given permission to copy since you are already paying for it.
And if they make you pay for it anyway, that doesn't give them the incentive to release better media. As long as they release something they get payed.
That sounds even worse.
I suspect blank media revenue is distributed in proportion to entertainment media's popularity, although the levy approach solidifies that status of industry gatekeepers to some extent.