Spotify is withdrawing support from two music festivals in protest of a controversial new tax on the French-operated music streaming platform, with further action expected in the coming months. is threatening.
Antoine MoninManaging Director of Spotify in France and Benelux, took me to X This week we will criticize new tax All music streaming services will be subject to a levy of 1.5% to 1.75%, the proceeds of which will be donated to the National Music Center (CNM). Founded in 2020 To support the French music sector.
All major music streaming platforms have joined together to oppose the new law, including Apple, Google’s YouTube, and local company Deezer, but Spotify has been the most vocal.Following last week’s announcement, Spotify the movement said said it was a “real blow to innovation” and was assessing its next move.
The company has now given a first look at what these moves will look like, with Monin saying it will withdraw its support: Francofolie de la Rochelle And that Printemps de Bourges We are supporting the festival starting in 2024 through financial and other on-site resources. “Other announcements will follow in 2024,” Monin added, but did not elaborate on what those measures would be.
Tete a Tetes
It’s worth noting that Spotify has recently gotten into trouble. Tete a tete Negotiations are underway with the Uruguayan government over a new law that promises “fair and equitable” remuneration for all artists involved in recordings. Spotify would have to pay rights holders twice for the same track under this law, Therefore, stop operating in that country. The company then made a 180-degree turn after receiving assurances from the government that music streaming platforms would not be expected to incur any additional costs resulting from the law.
France is different in that it is probably a much larger market for Spotify and an exit is not a viable course of action. And, as Monin hinted last week, that action plan is likely to focus on reallocating resources to other markets.
“Spotify will have the means to absorb this tax, but Spotify will stop investing in France and invest in other markets,” Monnin said. in an interview Last week on France Info. “France does not encourage innovation or investment.”
Source: techcrunch.com
