Spotify raises its prices in France due to new government tax

In a shocking press release, the company has announced an imminent increase in premium subscription prices for its French users. The subscription will become the most expensive in Europe

Spotify, the Swedish music streaming giant, has announced the next increase in premium subscription prices for its French users. In a detailed press release, the company explains the reasons why it made this decision, highlighting the challenges it faces in the French musical landscape.

According to Spotify, this price increase is a direct result of a new tax imposed by the French government as part of the 2024 budget: the CNM (National Music Center) tax. The tax, which aims to finance the CNM, the public body responsible for supporting the French music industry, will be levied directly on music streaming services.

Spotify expresses its concern about the impact of this tax on its activities in France. The company claims this measure amounts to a “double payment”, as it already pays a significant portion of its revenue to rights holders. Additionally, Spotify doubts the effectiveness of this tax to directly support artists and improve the listener experience, fearing that it will only serve to finance CNM’s administrative costs.

In its press release, Spotify recalls its long-standing commitment to the French music scene. This platform underlines its crucial role in the promotion and growth of the French repertoire, both nationally and internationally. In 2022, Spotify generated around €225 million for the recorded music industry in France, around a quarter of the sector’s total revenue, representing an increase of more than 200% since 2017.

Despite its efforts to reduce costs, notably by cutting marketing budgets for artists and its support for French music festivals, Spotify claims the new tax threatens its ability to operate sustainably in France. The company stresses that it cannot absorb these additional costs without affecting subscription prices.

Thus, Spotify announces that all its French Premium users will see their subscriptions increase in the coming weeks and months, making France the country in the European Union where Spotify Premium subscriptions are the most expensive. The company promises to get back to its French subscribers to provide them with all the details of this addition.

The arguments put forward by the company raise legitimate questions about the impact of the CNM tax and the delicate balance between supporting the French music industry, the fair remuneration of artists and the economic viability of streaming platforms. As Spotify prepares to raise its prices in France, it remains to be seen how the various players in the sector – artists, labels, streaming platforms and support organizations – will manage to find a sustainable and fair balance for all.