After the French government launched a new streaming tax aimed at boosting the music industry, Spotify responded to the new measure with a threat: price increases. In an open letter, the platform denounced the tax and said that, as such, users will literally pay the price.
The new fee charges 1.2% on all streaming revenue generated in the country. The proceeds will go to the Center National de la Musique (CNM), a public institution that supports and promotes the French music industry, hence the name of the tax.
This is not, however, Spotify’s first reaction to the tax. Last year, after the tax was approved, the streamer withdrew its financial support from French music festivals Francofolies de la Rochelle and Printemps de Bourges.
As we have long stated, we simply cannot absorb additional taxes. Even after making the difficult decision to reduce the budget for artistic marketing and support for French music festivals – which is an essential vehicle for Spotify to continue to funnel hundreds of millions of euros into the music industry – it continues to hinder our ability to operate in France. Therefore, in the coming weeks and months, we will have to make changes to our tariff plan in France. Users will pay the highest subscription rates across the European Union.
Spotify.
The company also threatened to withdraw its services from Uruguay when a similar tax was announced in the country. However, the Uruguayan government backtracked and said that streaming services would not have to cover any costs.
In the case of France, a country of extreme importance for the platform’s financial earnings, the solution was to offset the tax by redirecting it into the pockets of the consumer, who will have to lodge a complaint with the French Congress.
In a statement, Spotify promised that French subscribers will know more about the price increase “in the coming weeks.”
The post In conflict with France, Spotify threatens to raise prices in the country appeared first on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
