Spotify ends festival support in France because of new streaming tax

: Spotify

Title: Spotify withdraws support from French music festivals in protest against new tax

Summary: Spotify has announced it will withdraw support for two major music festivals in France, the Francofolies de la Rochelle and the Printemps de Bourges, in protest against a new tax on music-streaming services.

The tax, which is expected to range between 1.5 and 1.75%, has been introduced by the French government to support the Centre National de la Musique (CNM), which was established in 2020 to bolster the French music sector.

Spotify has been particularly vocal in its criticism of the tax, with its managing director for France and Benelux, Antoine Monin, describing it as a “real blow to innovation.”

In response to the tax, Spotify has decided to pull its support for the two festivals, which it has previously backed financially and through other resources.

Monin hinted at further actions in 2024, though specifics were not disclosed.

Spotify’s withdrawal from the festivals could have broader implications for the festivals and the artists involved, potentially affecting their visibility and financial viability.

The new tax has united major streaming platforms in opposition, reflecting broader industry concerns about the impact of such policies on innovation and investment in the music sector.

Spotify’s strong stance may influence how other companies respond to similar legislative changes globally.

Spotify’s reaction in France contrasts with its recent dispute with the Uruguayan government over a law promising “fair and equitable” remuneration for artists.

Initially threatening to cease operations in Uruguay, Spotify reversed its decision after receiving government assurances regarding the financial implications of the law.

While withdrawing from the French market is not a feasible option for Spotify, given its significance, the company plans to reallocate resources to other markets.

Monin’s statement that France does not encourage innovation and investment highlights Spotify’s strategy to focus on regions more conducive to its business model and growth.

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