Spotify requests a streaming tax to raise its prices

Spotify hasn’t just made friends on social media. The music platform published an open letter to its French subscribers on Thursday March 7 to warn them of the upcoming event. “The price increase is due to additional costs on music streaming services imposed by the French government as part of a tax intended for the National Music Centre. (CNM) »The increase was immediately criticized by internet users.

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The world number one in music streaming has made it clear that the French will soon pay the highest package in the European Union, without disclosing the amount or date. By far, Danes paid the heaviest bill (23.74 euros monthly for a family subscription).

In November 2023, Parliament unanimously voted for a tax on streaming platforms implemented on 1^er January, which amounts to 1.2% of their turnover in France (applied beyond the threshold of 20 million euros to protect smaller players). “Our concern, apart from the double payment amount on our part, was that this tax would not go directly to the artists.” Blame Spotify.

According to the agreement, the group has to pay 70% of its revenue to the major companies, who in turn, redistribute the rights to the artists. Spotify claims to generate “About 225 million euros for the recorded music sector in France for the year 2022 alone”, or a quarter of the turnover of the sector.

A simple alibi

The CNM replied to them on Friday 8 March: The revenue from this tax, estimated at 15 million euros per year, “Full investment in financial assistance programs”

To artists and music companies. And not, as Spotify claims, assigned to CNM’s operations.

Its president, Jean-Philippe Thiele, explains the world K “This 15 million euros will be added to the 52 million intervention budget of the CNM ». They will finance the Music Sector Economy Observatory and support the aim of supporting the emergence, diversity and international development of French music. “In any event, the rent or salary of the CNM”, He adds.

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The Swedish group will pay about half of the expected 15 million, the rest will come mainly from Deezer, but also Apple Music and free platforms like YouTube, Meta or TikTok. Spotify is accused of being a bad loser, as it raised its prices for the first time in July 2023. Its prices have since gone down from 9.99 euros to 10.99 euros for the premium price and from 15.99 euros to 17.99 euros for the family subscription. . However, this first increase was enough to offset the impact of the tax.

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