JAKARTA - Spotify, a Swedish streaming service, on Thursday 7 March announced it would increase subscription prices in France due to a new tax, which it said failed to reach its intended destination.
The government last year decided, starting this year, to impose a tax of 1.2% of the revenue of streaming companies in France to help funding the creation of music.
"While Spotify is eager to encourage the government to avoid adding this tax, unfortunately they decided to resume it," the Swedish group said in a statement. "Obviously, all French users will see their subscription fees go up. French users will now pay the highest subscriptions across the European Union."
Spotify said it would announce the extent of price increases at the next stage. In a statement, Spotify said the tax was wrong and would not help create music.
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"He will only sacrifice listeners and create additional intermediaries: CNM," he said, referring to the French National de la Musique (CNM) Center.
The tax, which the government hopes will raise around 15 million euros this year, will contribute to CNM's support for the music industry, including helping young French artists and artists trying to succeed abroad.
The head of CNM, Jean-Philippe Thiellay, rejected Spotify's criticism. "The tax will not finance CNM, whose operations are guaranteed by the state, but will finance creation and diversity," Thiellay told France Musique radio in an interview last year. "100% of this tax will be re-injected into the sector."
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