Three questions on this decision by the platform and on the new “streaming tax”.

Streaming platform Spotify announces a price increase for its premium offering. Case in point, according to her: a “streaming tax” to finance the National Music Center (CNM).

will be “The highest package in the European Union”. Music streaming platform Spotify will raise some of these prices as early as 2024. This is what he announced on the social network about the new tax he will have to pay: the streaming tax or the CNM tax (National Music Center). Franceinfo answers three questions about this decision by Spotify.

What does Spotify advertise?

The streaming platform announces an increase in the price of its premium offering to 10.99 euros. Only French customers of the company are affected. How much this increase will be is not yet known. In its press release, Spotify explains that it will provide all the details to its French subscribers “in the next week”. The platform explains that it was forced to take this decision because it has to pay a new tax called “streaming tax” or “CNM tax” and from now on, everything is collected, so it has to pay. “About two-thirds” to the right holders of its profits (record companies, artists, etc.) and the French state. Spotify says it is concerned that this tax “Does not go directly to artists” But for “An Additional Mediator – CNM.” The platform specifies that this streaming tax will bring CNM 15 million euros in 2024, while “Administrative budget (office expenses, personnel, technical expenses, media monitoring or professional training)” The amount of the organization is 20 million euros.

What is the streaming tax?

A streaming tax was adopted by the French government in December 2023 to apply on January 1. Streaming platforms such as Apple Music, Deezer, YouTube and Spotify will now have to pay 1.2% of their profits to the National Music Center (CNM). Created in 2020, the organization aims to support French musical creation based on the model of the National Cinema Center (CNC) created in 1946. Specifically, CNM primarily supports artists with financial support and training, but it also works for music festivals. , concert halls and record stores among others. Platforms with a turnover of less than 200,000 euros, such as the French Cobus, are exempt from this tax. This is the end of a months-long standoff between the streaming giants and the French state, with the platforms pushing for a voluntary contribution of 14 million euros.

How does CNM respond to Spotify’s press release?

Jean-Philippe Thiele, President National Music Centre, The first guarantees that the streaming tax will not be used for its administrative budget, contrary to what Spotify France suggests. “It is the Ministry of Culture that looks after it”That explains. “The salaries of the 110 people employed by the centre, the rent of our premises, IT services, are all covered by a subsidy from the ministry. 100% of the revenue from the streaming tax is re-injected into the music industry, to support record recording, to help artists organize showcases, to festivals. To participate, to present oneself internationally etc.”

The president of the CNM also explains that live performances have had the same tax for almost four years, as 3.5% of concert ticket sales are donated to the center to support music creation, especially emerging and emerging artists. Independent environment. “This streaming tax is a redistribution mechanism that has already existed in live or cinema for over 70 years”He believes. Jean-Philippe Thiele finally recalls that this tax amounts to only 1.2% of the platform’s turnover. “It is a very small part that will be reintroduced into the composition of music specifically to support the emergence, which is the great success of tomorrow. I bet that after a while we will say that it is a method that has allowed us to defend. Cultural sovereignty, a bit like CNC in cinema, in a hyper-competitive global market. If we remain passive, it is the mainstream that will crush everything.”