Spotify is taking a stand against a new tax targeting music-streaming platforms operating in France by withdrawing support for two music festivals and considering additional actions.
Antoine Monin, managing director for Spotify in the France and Benelux regions, expressed opposition to the tax which will impose a levy of approximately 1.5 to 1.75% on music-streaming services, with the proceeds allocated to the Centre National de la Musique (CNM), established in 2020 to support the French music sector.
While major music-streaming platforms, including Apple, Google’s YouTube, and Deezer, have all opposed the new law, Spotify has been the most vocal. After the announcement, Spotify stated that the move was a “real blow to innovation,” and is currently evaluating its next steps.
The company has revealed its initial response, with Monin announcing that it will withdraw support for Francofolies de la Rochelle and the Printemps de Bourges festivals from 2024, which it has been backing financially and through other resources. Monin also mentioned that “further announcements will follow in 2024,” without specifying additional actions.
Tête-à-têtes
It is important to note that Spotify was recently engaged in a tête-à-tête with the Uruguayan government regarding a new law promising “fair and equitable” remuneration for all artists involved in a recording. Initially, Spotify argued that the law would require double payment to rightsholders for the same tracks, potentially leading to its withdrawal from the country. However, the company reversed its decision after the government assured that music-streaming platforms would not bear any extra costs from the law.
France presents a different scenario, being a potentially larger market for Spotify, making a complete withdrawal less feasible. As hinted by Monin, the company’s strategy is likely to involve reallocating resources to other markets.
“Spotify will be able to handle this tax, but Spotify will reduce its investment in France and divert resources to other markets,” Monin stated in an interview with FranceInfo last week. “France does not promote innovation and investment.”
