In this nation, Spotify is raising the cost of its membership service

Spotify, a Swedish music streaming service, will raise its fees in France. A new tax would be the indicated cause of the price increase, according to a report by the news agency Reuters. According to the newspaper, the business run by Daniel Ek has maintained that the new tax would not achieve its stated objectives.
The French government made the decision to impose a 1.2% tax on income-streaming firms beginning this year, in 2023.

The government thinks that this levy would assist in financing music production throughout the nation.
Spotify’s comments on the price increase
“Spotify worked very hard to encourage the government to avoid adding this tax,” the business stated in a statement. “Unfortunately, they decided to move forward.” To put it simply, the cost of every French user’s membership plan will increase. The European Union’s higher membership fees will henceforth be paid by French customers.”
Spotify has said that it will make the precise terms of the price rise public in the days to come. The business emphasized that the levy was ill-advised and would not promote the production of music.
The firm said, “It will simply come at the expense of listeners and create an additional middleman: the CNM,” in reference to the National Music Centre in France.
How the tax may benefit the French music sector
According to the French tax authorities, this tax will enable the nation to generate around 15 million euros ($16.35 million) in revenue by 2024. It is anticipated that these funds will help CNM continue to support the music business. Among them are up-and-coming artists and French artists attempting to make a name for themselves outside.
Jean-Philippe Thiellay, the head of the CNM, disagreed with Spotify’s assessment. In 2023, Thiellay said in a radio interview with France Musique that the tax “will finance creation and diversity, but it will not finance the CNM, whose operations are ensured by the state.” The industry will get 100% of this tax back.