The giant Spotify faces criticism from the National Music Center (CNM). The latter contests the justification for the announcement of the price increase in France, which would be due to the new streaming tax.
The release of Spotify is the talk of the town. On Thursday, the world leader in music streaming announced an upcoming increase in its prices in France, attributing the increase to the new streaming tax imposed by the government. The CNM, singled out by the Swedish company, responded this Friday March 8, 2024, specifying that this 1.2% tax on turnover does not impact its own operation, but financially supports artists. The public establishment accuses Spotify of finding an excuse to justify the increase in its prices.
The CNM dots the “i” with Spotify on the use of revenue from the tax
Spotify announced on Thursday an upcoming increase in its prices in France, citing the new streaming tax in place since 1er January 2024. This tax on music listening platforms represents 1.2% of the turnover of free and paid services.
The National Music Center was keen to explain what the revenue from this new tax, estimated at around 15 million euros by state services, will be used for. “ Contrary to what Spotify indicates, not a cent of this resource finances the operation of the CNM “. That has the merit of being clear.
The CNM therefore completely refutes Spotify’s statements according to which the tax would contribute to the administrative budget of the establishment. In detail, he explains that the proceeds from the tax will be 100% invested in the financial aid programs it deploys, to support French music projects, artists and businesses.
The establishment points the finger at Spotify’s lies and inaccuracies
The CNM takes the opportunity to respond to Spotify to recall the importance of solidarity in a globalized music industry, increasingly dependent on streaming elsewhere. The establishment adds that similar mechanisms, such as the tax on ticketing in live shows (rate of 3.5% on turnover, far from that of musical streaming), have contributed to the vitality and diversity musical.
In its letter, Spotify also mentioned an administrative budget (personnel, office costs, professional training, technical costs) of 20.2 million euros for the CNM, out of a total budget of 146 million euros. “ This sum does not correspond to the CNM’s “administrative budget”, contrary to what Spotify indicates, but covers the resources allocated by the establishment to non-financial measures intended for music professionals. “. The establishment is thinking in particular of career guides and the training center for artists and their entourages, among others.
The CNM says it regrets that Spotify suggests that the price increase is solely due to the tax. According to him, his communication would rather be linked to a series of previous decisions. So who’s telling the truth? The debate has begun.
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