Deezer, Spotify: the government threatens to tax music streaming services

The government is considering a tax on music streaming to finance the French music sector. Deezer opposes this measure, which would penalize it more than its competitors. Deezer’s deputy managing director warns that he will have to increase subscription rates if the tax is implemented.

As we explained to you, the government wants to create a tax on music streaming to finance the French music industry and fairly compensate artists. But at Deezer, the number 2 streaming in France, we denounce an unfair and penalizing measure for the French platform. Stéphane Rougeot, its deputy CEO, spoke on BFM Business.

Deezer opposes government’s proposed music streaming tax

The government wants to create a music streaming tax to fund the National Music Centre (CNM), a public institution created in 2020 to support music and variety professionals. The objective is to find new sources of funding to preserve French cultural sovereignty and «ensure fair remuneration for artists».

According to a report by MP Julien Bargeton (Renaissance), the tax on music streaming would be 1.75% on platform revenues. But for Stéphane Rougeot, this tax would be «an anti-Deezer tax» because it would affect much more Deezer than its competitors, like Spotify. «We make more than 60% of our turnover in France against less than 3%» for other players, he explained.

Stéphane Rougeot also highlighted the issues of digital and cultural sovereignty represented by Deezer, a French platform. He said the tax would make Deezer much less competitive with streaming giants.

An inevitable increase in tariffs

Faced with this tax, Deezer would have no choice but to pass the cost on to its subscribers, said Stéphane Rougeot. He said he could not lower the remuneration of rights holders, nor absorb the tax, because its financial balance did not allow it. He therefore called on the government to abandon this tax and find other solutions to support the French music sector.

The government has given until September 30 to the players in the music industry to reach an agreement, otherwise it will propose this tax to Parliament. This measure divides the world of music: some see it as a measure of justice and support for French creation, like former Minister of Culture Jack Lang, others as an unfair and penalizing tax.