Note: this is a machine-generated translation of the CNM's statement issued earlier today
On Thursday 7 March, Spotify published an open letter to its French subscribers announcing a forthcoming price increase as a result of the introduction of the so-called "streaming tax". In response, the Centre national de la musique would like to make the following clarifications.
The tax on online music listening platforms was introduced on 1 January 2024. It amounts to 1.2% of the turnover of free and pay platforms. The tax has been estimated by the French government at €15m for all free and pay streaming platforms.
Contrary to what Spotify says, not a single cent of this resource is used to fund the CNM's operations: the proceeds of the levy are invested entirely in the financial aid programmes that the CNM deploys for projects by artists and music companies to support the emergence, diversity and international development of French music.
Without this support, many recording projects and music videos in all musical genres would simply not exist. In a globalised and highly competitive music economy, companies and artists need the support of public authorities to exist and count in international competition.
This new redistributive contribution from recorded music is based on a principle of solidarity. It has been developed in consultation with the entire industry. This mechanism is based on precedents that have proved their worth: in the field of live entertainment, a tax that has existed for nearly 40 years, at a rate of 3.5% on ticket sales, contributes to the vitality and musical diversity in the regions; in the field of cinema and audiovisual, the support systems implemented by the CNC for nearly 80 years have enabled our national production to become one of the most diverse and dynamic in the world.
Spotify also refers in its letter to a sum of €20.2 million, which would constitute the CNM's budget, when compared with the €15 million, the proceeds of the streaming tax for the sector as a whole. It should be remembered that this sum does not correspond to the CNM's "administrative budget", contrary to what Spotify indicates, but covers the resources allocated by the institution to non- financial schemes for music professionals: training centre for artists and their teams, career resources, advisory meetings, promotional tools, etc.
This budget also enables the CNM to fund the music industry observatory, which is essential for understanding the challenges facing the sector and which the institution carries out completely independently. Above all, all of these activities have nothing to do with the streaming tax: they are fully funded by a grant from the State (Ministry of Culture).
The Centre national de la musique regrets that Spotify is trying to make its subscribers believe that this new price increase, which seems to be in line with previous decisions, is solely due to the introduction of a system of solidarity contributions to support musical diversity. However, the institution hopes to be able to count on the online listening platform to stand by its side in support of artists and their professional entourages.
The Centre national de la musique in a nutshell
The Centre national de la musique's mission is to guarantee the diversity and freedom of musical creation. Through financial and non-financial aid, it supports songwriters, composers, artists and the professionals who accompany them, enabling them to reach out to all audiences, in France and abroad.
The support provided by the CNM takes the form of measures designed to meet the diverse needs of the music industry in all its forms (recorded music, live music and variety shows, music publishing, songwriters, composers, etc.) and all its aesthetics. This support also takes the form of observation activities, studies and forecasts, information, professional training and specialist publications. The Centre national de la musique also supports the music and variety industry as it faces up to its transformations: actions in favour of the ecological transition, innovation, the dissemination of music both nationally and internationally, and equal access for men and women to the music profession.
