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France is set to introduce a new streaming tax in 2024 that is aimed at boosting investment in the country’s music industry. The levy will be placed on major music streaming services such as Spotify and is intended to fund the National Center for Music (NCM).
President Emmanuel Macron announced last week that streaming platforms will be subject to a modest percentage-based fee on their annual revenues. While specifics are still being finalized, the NCM has advocated strongly for this tax, arguing that it is critical to sustaining the organization’s budget.
The proposed streaming tax was approved last month in the Senate as part of the 2024 budget planning. Reports indicate the levy may fall between 1.5-1.75% of companies’ revenue. However, not all industry players are on board with this new policy.
Leading music streamers released a joint statement criticizing the upcoming law. Services like Apple Music, Deezer, and Spotify claim they have voluntarily pledged over €14 million in funding to artists in 2025 already.
A Spotify spokesperson commented that the government did not consider the sector’s existing contributions. In their view, the tax threatens innovation and dampens growth prospects for the recorded music business domestically. Spotify will examine options to counter what it sees as an unfair, disproportionate policy change.
Only time will tell how the streaming tax impacts France’s cultural goals and its relationship with major platforms that dominate music consumption worldwide. Both supporters and critics of the levy make compelling cases worth considering on both sides of this debate.
