In what seems like a protest action in addition to a logical finance decision, Spotify will raise its subscription rate in France to compensate for a new tax levied by the French government.
We reported in December (HERE), the new French tax is targeted specifically at streaming music companies, and took effect at the first of this year. President Macron called the tax “a very low rate of levy.” More specifically, the rate is about 1.2% of income. That’s too much seasoning for Spotify’s taste. The resulting price hike shifts the cost to subscribers.
We simply can’t absorb any additional taxes. –Spotify
Spotify is not the only service affected, of course: Deezer, Apple Music, and YouTube Music also fall under the tax obligation. Proceeds from the tax go to the Centre National de la Musique, a four-year-old advocacy organization whose proceeds support the French music sector in various ways.
Spotify is making noise about the price change, perhaps hoping that consumers will bring heat to the French government. A public blog post lays out the whole thing from the company’s perspective. “Perhaps you’ve never heard of the Center for National Music,” the company speculates provocatively. Spotify also wonders out loud whether the tax money will actually go where it should — directly to artists. Spotify implies that the collected money will be used, in part, to subsidize musical activity.
Anyone there ever take a second look at these posts (a.k.a. “editing”)?
– 2nd para you have “HERE” where we’re supposed to be able to click through to the DEC RAIN piece about levying in France of tax on streaming music; how about adding the link so that we actually can?
– 5th para: “total sub payments to artists … totalled 225 Euros [sic] in 2022”; I suspect it might have been somewhat more than that
Thanks very much for the note. We have added the previously missing link.