A 1.75% tax on the turnover of music streaming platforms could be put in place to support the industry. But isn’t this tax likely to increase the price of subscription to these services?
If many listen to music on streaming platforms like Spotify, Deezer or Apple Music, this economic model is far from profitable for creation. The State is therefore thinking about a virtuous circle as effective as the CNC for the cinema with the introduction of a tax of 1.75% of the turnover of music streaming services. YouTube and TikTok are also affected despite being free. The price of subscriptions could therefore increase.
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A tax of 1.75% of platform turnover
Julien Bargeton (Renaissance) is working on a tax on music streaming with the possibility to take 1.75% of the turnover of paid and free platforms. YouTube or TikTok are therefore no exception. Towards an increase in the subscription price for consumers?
Julien Bargeton reassures in an interview for Les Échos taking the example of Netflix which contributes to the financing of our audiovisual industry without increasing its prices: “ The 15 cents per subscription that this represents will not necessarily be passed on ».
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The price of the subscription about to increase?
However, the National Center for Music which was created in 2020 desperately short of money despite the sums invested by the government and the tax on live performance tickets.
Even if various measures have been put in place, Julien Bargeton’s report speaks of a hole of 30 to 40 million euros. The tax of 1.75% of the turnover of music streaming platforms should bring in $20 million. It is therefore difficult to imagine how the subscription price could not increase for consumers.
In fact, these are the music streaming platforms who will decide whether or not to increase the prices. This tax will be studied in 2024 as part of the finance bill. See you in the months to come.
Source : The echoes
