Spotify begins ‘disinvesting’ in France in response to new music-streaming tax


Spotify is pulling assist for 2 music festivals in protest in opposition to a controversial new tax directed at music-streaming platforms working in France, and threatened extra motion will comply with within the coming months.
Antoine Monin, managing director for Spotify within the France and Benelux areas, took to X this week to decry a new tax that can impose a levy of what’s anticipated to be between 1.5 and 1.75% on all music-streaming companies, with the proceeds going towards the Centre Nationwide de la Musique (CNM), which was established in 2020 to assist the French music sector.
Whereas all the foremost music-streaming platforms have come collectively in opposition to the brand new regulation, together with Apple, Google’s YouTube and native participant Deezer, Spotify has been essentially the most vocal. Within the wake of the announcement final week, Spotify said that the move was a “actual blow to innovation,” and that it was evaluating its subsequent strikes.
The corporate has now given the primary indication of what these strikes are, with Monin noting that it’s going to pull assist for Francofolies de la Rochelle and the Printemps de Bourges festivals ranging from 2024, which it has been supporting financially and by way of different on-the-ground assets. Monin added that “different bulletins will comply with in 2024,” although he didn’t elaborate on what these actions may be.
Tête-à-têtes
It’s price noting that Spotify was just lately embroiled in a tête-à-tête with the Uruguayan authorities over a brand new regulation that guarantees “honest and equitable” remuneration for all artists concerned in a recording. Spotify argued the regulation would imply it must pay rightsholders twice for a similar tracks, and it will thus cease operating in the country. The corporate later pulled a 180-degree turn when the federal government gave assurances that music-streaming platforms wouldn’t be anticipated to cowl any further prices ensuing from the regulation.
France is completely different, insofar because it’s doubtless a a lot greater marketplace for Spotify and pulling out shouldn’t be a viable plan of action. And as Monin hinted ultimately week, its plan of motion is prone to middle extra round reallocating assets to different markets.
“Spotify can have the means to soak up this tax, however Spotify will disinvest in France and can put money into different markets,” Monin mentioned in an interview with FranceInfo final week. “France doesn’t encourage innovation and funding.”