Spotify, a leading music-streaming platform, is making a bold move in response to a new tax targeting music-streaming services in France. The company is taking a stand against the controversial tax by withdrawing support for two music festivals and has hinted at further actions in the future.
Key Takeaway
Spotify is pulling support for music festivals in France as a protest against the new music-streaming tax, and has hinted at further actions in the future.
Protest Against New Tax
The new tax in question is set to impose a levy of approximately 1.5 to 1.75% on all music-streaming services operating in France. The proceeds from this tax will be directed towards the Centre National de la Musique (CNM), an organization established to support the French music sector. Spotify, along with other major music-streaming platforms such as Apple, Google’s YouTube, and Deezer, has expressed opposition to this new law.
Spotify’s Response
Spotify has been particularly vocal in its opposition to the new tax. The company has described the tax as a “real blow to innovation” and has indicated that it is evaluating its next steps in response to this development.
Actions Taken by Spotify
Antoine Monin, the managing director for Spotify in France and Benelux, has announced that the company will withdraw its support for the Francofolies de la Rochelle and the Printemps de Bourges festivals starting from 2024. Additionally, Monin has suggested that more announcements regarding future actions will follow in 2024, although specific details have not been disclosed.
Implications and Future Plans
While Spotify has indicated that it has the capacity to absorb the new tax, it has stated its intention to “disinvest” in France and redirect its investments to other markets. This move reflects the company’s stance that France does not foster innovation and investment, prompting a strategic reallocation of resources.
Spotify’s decision to take a stand against the new music-streaming tax in France underscores the ongoing challenges and complexities faced by digital platforms operating within varying regulatory environments.
