Image credit: Anthony Choren

The French government plans to introduce a tax on music streaming services, causing backlash from streamers like Spotify.

Earlier in the month, it was revealed that the French government had proposed a new tax for music streaming services. France wish to help fund the Centre National de la Musique (CNM) and catch up to other countries in music streaming revenue.

European distributors like Spotify and Deezer have decried the suggested tax. Deezer CEO, Jeronimo Folgueira described the tax as the “worst possible outcome” after streaming services offered a donation to the CNM instead of the tax.

It’s now being reported how streaming services plan to respond to the tax. It will see a negative outcome for listeners, with sources close to the situation claiming that Spotify are strongly considering a subscription-price increase in the country. Essentially, passing the tax off on to consumers. Spotify are currently €1 cheaper a month than French streaming service Deezer, at €10.99 a month.

In the wake of the news, Spotify have also cut their ties to two French music festivals. Spotify have abruptly ended their involvement with Printemps de Bourges and Francofolies de La Rochelle. It’s the first in what could become a large scale disinvestment in France for streaming services. Spotify’s managing director for France and Benelux, Antoine Monin said the country would “no longer be a priority” if the tax advances.

Spotify won’t be pulling as large a threat as pulling out of the country entirely, as they did with Uruguay recently. The French market is too large for them to leave, so they are hoping that their threats of disinvestment will do the trick instead. We may see more countries follow suit soon, though. Then the music streaming services may not be in a position to push back by looking to other countries for investment.