Deezer is campaigning for the abandonment of a tax on music streaming. She fears being the big loser in this project, and warns that this will have the effect of increasing the price of the subscription.
The Deezer subscription billed at 10.99 euros per month may be on its way out. Guest of BFM Business on August 2, the deputy general manager of the French music streaming giant warned that the government’s thoughts on a tax in his sector would handicap him enormously, much more than his rivals, such as Spotify or Apple Music.
Ultimately, it is Deezer’s French customers who will bear the cost of the tax. ” We cannot pass it on to the rights holders “, according to Stéphane Rougeot, the second of Deezer. The company also claims that it cannot absorb it itself, because its ” financial balance does not allow it. Translation: its finances are too fragile to spend it in its accounts.
Deezer now offers a main offer, called Deezer Premium, on which several options exist: a reduction in the event of a one-year subscription (8.24 euros per month in this case), a student price (5.99 euros per months), a reduction the first year and the first months free. There is also a family offer, at 17.99 euros per month.
Deezer is highly dependent on the French market, with a turnover of which 60% comes from France, according to Stéphane Rougeot. In comparison, an opponent like Spotify only makes 3% of its revenue here. In fact, the tax would hit Deezer totally disproportionately to other platforms. »
A Deezer price increase could also have another terrible effect on Deezer, by pushing some of its customers to other platforms if they do not pass on this increase, or in a more moderate way. The effects of inflation on the household budget lead many households to redouble their attention to the evolution of their subscriptions.
A 1.75% tax?
The prospect of a tax on streaming was raised on June 14, during the music festival, by Emmanuel Macron. The President of the Republic appears in favor of a device aimed at supporting the music industry. The actors of the sector are invited to dictate together to identify new avenues of financing. If by the end of September nothing moves, the executive would intervene.
If it is this scenario that takes shape, the government and the Parliament will be able to base themselves on the work of Julien Bargeton, senator and author of a report on the strategy for financing the music industry in France. In it, a tax of 1.75% is advanced on income from music streaming, whether paid (by subscription) or free (financed by advertising).
Do you want to know everything about the mobility of tomorrow, from electric cars to pedelecs? Subscribe now to our Watt Else newsletter!