Spotify to increase French subscription prices due to new music streaming tax

Music streaming giant Spotify this week announced subscription price increases for its Premium service in France. The change comes in response to a new government tax imposed on streaming platforms to fund the Centre National de la Musique (CNM).

Spotify expressed disappointment with the tax. The company argued that the tax would not directly benefit artists and would disproportionately impact consumers.

The French government introduced the CNM tax in late 2023 as part of its 2024 budget. The tax aims to support the country’s music industry, but Spotify and other streaming services have criticized its implementation.

Spotify emphasized its substantial contributions to French music, noting a 200% increase in royalty payments to French rights holders since 2017. The company further expressed concerns that the tax would hinder its ability to support artist marketing and French music festivals.

Spotify will communicate the exact price increase to French subscribers in the coming weeks. The company reluctantly acknowledged the need to pass on the added cost of the tax to its users.