Spotify (NYSE:SPOT), the Swedish streaming giant, has announced its decision to raise prices in France, citing a new tax implemented by the government. This tax, levied at 1.2% on streaming companies’ revenue, aims to support music creation endeavors within the country.
Expressing disappointment over the imposition of the tax, Spotify stated its efforts to dissuade the government from introducing it were unsuccessful. Consequently, all French users will witness an increase in their subscription fees, making them the highest across the European Union. The extent of this price adjustment will be disclosed by Spotify at a later date.
In its critique of the tax, Spotify asserted its belief that it would not serve the intended purpose of fostering music creation. Rather, the company argued, it would burden listeners and introduce an additional intermediary, referring to France’s National Music Centre (CNM).
The government anticipates generating approximately 15 million euros this year through this tax, contributing to CNM’s efforts to support the music industry, particularly emerging and French artists seeking international recognition. However, Jean-Philippe Thiellay, the head of CNM, dismissed Spotify’s objections, emphasizing that the tax revenue would directly benefit music creation and diversity, with every euro reinvested into the sector.
Despite Spotify’s opposition, the French government remains steadfast in its commitment to utilizing the tax to bolster the country’s music landscape.
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