Spotify hasn’t just made friends on social media. The music platform published an open letter to its French subscribers on Thursday March 7 to warn them of an upcoming “price increase due to additional costs on music streaming services, imposed by the French government as part of the tax intended for the National Music Center [CNM] »an increase immediately criticized by Internet users.
The world number one in music streaming specifies that the French will soon pay the highest package within the European Union, without revealing either the amount or the date. Until now, the Danes paid the heaviest bill (23.74 euros monthly for a family subscription).
In November 2023, Parliament unanimously voted for a tax on streaming platforms implemented on 1er January, which amounts to 1.2% of their turnover in France (applicable above a threshold of 20 million euros, to protect small players). “Our concern, in addition to what would amount to a double payment on our part, was that this tax would not go directly to the artists,” deplores Spotify.
Contractually, the group must pay 70% of its revenues to the majors who, themselves, redistribute the rights to the artists. Spotify claims to have generated “nearly 225 million euros for the recorded music sector in France for the year 2022 alone”, or a quarter of the sector’s turnover.
An easy alibi
The CNM responded to him on Friday March 8: the proceeds of this tax, estimated at 15 million euros per year, will be “fully invested in financial aid programs” to artists and music companies. And not, as Spotify claims, assigned to the operation of the CNM.
Its president, Jean-Philippe Thiellay, specifies World that “these 15 million euros will be added to the 52 million intervention budget of the CNM ». They will finance the Music Sector Economy Observatory and aid intended to support the emergence, diversity and international development of French music. “In no case, the rent or the salaries of the CNM”, he adds.
The Swedish group would pay around half of the expected 15 million, the rest being taken mainly from Deezer, but also Apple Music and free platforms like YouTube, Meta or TikTok. Spotify is accused of being a bad loser, since it has already increased its prices for the first time in July 2023. Its prices then increased from 9.99 euros to 10.99 euros for the premium price, and from 15.99 euros at 17.99 euros for the family subscription. However, this first increase alone was sufficient to make up the incidence of the tax.
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