Spotify, the popular music-streaming service, is taking a stand against a new tax in France aimed at music-streaming platforms.
The company has announced its decision to withdraw support from two major music festivals in France as a form of protest against this tax.
New Tax and Spotify’s Response
The new tax, expected to be between 1.5 and 1.75%, will be imposed on all music-streaming services operating in France. The proceeds from this tax will go to the Centre National de la Musique (CNM), established in 2020 to support the French music sector.
Antoine Monin, Spotify’s managing director for France and Benelux, criticized the tax, calling it a “real blow to innovation.”
In response, Spotify has decided to pull its financial and on-the-ground support for the Francofolies de la Rochelle and the Printemps de Bourges festivals starting in 2024.
Spotify’s Broader Strategy
While all major music-streaming platforms, including Apple, Google’s YouTube, and local player Deezer, oppose the new law, Spotify has been the most vocal.
The company has hinted at reallocating resources to other markets as part of its broader strategy. Monin stated that Spotify would have the means to absorb this tax but would choose to disinvest in France and invest in other markets instead.
Spotify’s decision to withdraw support from French music festivals marks a significant move in its opposition to the new streaming tax.
The company’s actions reflect its commitment to innovation and investment, and it’s clear that Spotify is prepared to take further steps in 2024 to adjust its business strategy in response to the new tax environment in France.
