Spotify managing director for the France and Benelux regions, revealed the first glimpse of Spotify response
In a bold move, Spotify is taking a stance against a contentious new tax targeting music-streaming platforms in France. This tax, which is expected to range between 1.5 and 1.75%, will be applied to all music-streaming services, with the funds directed to the Centre National de la Musique (CNM), established in 2020 to bolster the French music sector.
While major music-streaming platforms, including Apple, Google’s YouTube, and local player Deezer, have collectively opposed the new law, Spotify has emerged as the most vocal critic. Responding to the announcement, Spotify labeled the move a “real blow to innovation” and hinted at evaluating its strategic moves.
Antoine Monin, Spotify managing director for the France and Benelux regions, revealed the first glimpse of Spotify’s response. The company will withdraw support for the Francofolies de la Rochelle and the Printemps de Bourges festivals, both of which it has been financially supporting and assisting on the ground, starting from 2024. Monin suggested that more actions would follow in 2024, although the specifics remain undisclosed.
This development follows Spotify’s recent engagement with the Uruguayan government over legislation guaranteeing “fair and equitable” remuneration for artists involved in recordings. While initially threatening to cease operations in Uruguay, Spotify reversed its decision after receiving assurances from the government that additional costs resulting from the law would not be imposed on music-streaming platforms.
In contrast to the Uruguayan situation, France represents a more significant market for Spotify, making a complete withdrawal less feasible. As Monin indicated last week, Spotify’s strategy is likely to involve reallocating resources to other markets rather than pulling out of France entirely.
“Spotify will have the means to absorb this tax, but Spotify will disinvest in France and will invest in other markets,” Monin stated in an interview with FranceInfo. He emphasized that France’s approach does not encourage innovation and investment, prompting Spotify to explore opportunities elsewhere.
