Higher Spotify Fees for French Subscribers due to “Streaming Tax”
Spotify, the popular music streaming platform, will be increasing its monthly premium subscription prices in France. Starting in June, customers who have already subscribed will see an increase in their monthly payments. The price for the monthly premium subscription will rise by 13 cents to €11.12, while the family plan will increase by 22 cents to €18.21 per month.
This increase in prices is a result of France’s membership in the European Union and the implementation of a “streaming tax” by the government. In December, it was announced that companies in the audio streaming industry with sales exceeding twenty million euros would be required to contribute one and a half percent of their revenue collected in France. Spotify, with its significant market share and revenue, falls under this obligation.
The streaming tax is expected to generate approximately fifteen million euros, which will be allocated to France’s “Centre National de la Musique” (CNM). The CNM provides research and subsidies to support the country’s music industry. Spotify, in response to the tax, issued a press release emphasizing its long-standing support for French artists. However, it also pointed out that it will be obligated to contribute approximately two-thirds of each euro it generates to the French government and rights proprietors.
Spotify considers this situation unsustainable as it does not entail an increase in prices for customers. In an effort to protect France’s music industry, several companies proposed an alternative voluntary contribution model, but the government rejected this concept. As a result, Spotify made the decision to cease its sponsorship of two music festivals held in France, the Francofolies de La Rochelle and the Printemps de Bourges.
Despite the increase in subscription fees for French subscribers, it is worth noting that consumers in the United Kingdom pay even higher prices for their Spotify plans. The two-person plan costs £16.99 (€19.99) per month, while the premium subscription for individuals costs £11.99 (€14.11) per month. The student plan and family package both incur a monthly fee of £5.99 (€7.05), with the family plan costing £19.99 (€23.52) per month.
Overall, while the increase in Spotify fees may be a disappointment for French subscribers, it is a necessary step for the platform to comply with France’s streaming tax regulations. The funds generated from this tax will contribute to the support and development of the country’s music industry, benefiting both artists and consumers in the long run.
