The French and international streaming giants do not want a new tax. Planned by the government in the finance bill for 2024, the streaming tax will reduce income linked to Spotify or Deezer subscriptions at a rate that is not yet defined, but which should range around 1.5%.
This December 20, Antoine Monin, head of Spotify France, announces that the company will no longer finance the Francofolies de la Rochelle and the Printemps de Bourges following the creation of the streaming tax. Still seeking profitability, Spotify recently announced job cuts.
Official partner
Until then, Spotify was an official partner of the two festivals, which also offered official playlists on the streaming platform. Contacted by Tech&Co, Antoine Monin has not yet specified the amount paid by Spotify to Francofolies and Printemps de Bourges.
According to the Government’s plans, the fees linked to the streaming tax will supply the National Music Center, a public establishment that also finances the two festivals in question.
Like Deezer, which was also critical of this new tax, Spotify regretted this choice and even threatened to “disinvest” in the French market. According to Antoine Monin, 70% of Spotify’s revenue is paid to rights holders, meaning that taxes are only collected on the remaining 30%.
Source: BFM TV
