Spotify begins ‘disinvesting’ in France in response to new music-streaming tax

Spotify is pulling help for 2 music festivals in protest towards a controversial new tax directed at music-streaming platforms working in France, and threatened extra motion will comply with within the coming months.

Antoine Monin, managing director for Spotify within the France and Benelux areas, took to X this week to decry a new tax that may impose a levy of what’s anticipated to be between 1.5 and 1.75% on all music-streaming companies, with the proceeds going towards the Centre Nationwide de la Musique (CNM), which was established in 2020 to help the French music sector.

Whereas all the most important music-streaming platforms have come collectively in opposition to the brand new legislation, together with Apple, Google’s YouTube and native participant Deezer, Spotify has been probably the most vocal. Within the wake of the announcement final week, Spotify said that the move was a “real blow to innovation,” and that it was evaluating its subsequent strikes.

The corporate has now given the primary indication of what these strikes are, with Monin noting that it’ll pull help for Francofolies de la Rochelle and the Printemps de Bourges festivals ranging from 2024, which it has been supporting financially and by way of different on-the-ground assets. Monin added that “other announcements will follow in 2024,” although he didn’t elaborate on what these actions is likely to be.

Tête-à-têtes

It’s price noting that Spotify was not too long ago embroiled in a tête-à-tête with the Uruguayan authorities over a brand new legislation that guarantees “fair and equitable” remuneration for all artists concerned in a recording. Spotify argued the legislation would imply it must pay rightsholders twice for a similar tracks, and it might thus cease operating in the country. The corporate later pulled a 180-degree turn when the federal government gave assurances that music-streaming platforms wouldn’t be anticipated to cowl any additional prices ensuing from the legislation.

France is totally different, insofar because it’s possible a a lot greater marketplace for Spotify and pulling out is just not a viable plan of action. And as Monin hinted finally week, its plan of motion is prone to middle extra round reallocating assets to different markets.

“Spotify will have the means to absorb this tax, but Spotify will disinvest in France and will invest in other markets,” Monin mentioned in an interview with FranceInfo final week. “France does not encourage innovation and investment.”