The music sector has failed to agree on the means to finance the National Music Center (CNM). The government has taken control of the matter and players in the sector risk having a tax imposed on streaming. A measure that they fear.
“The government abandons music”, wrote in a press release on Friday, September 13, three organizations in the French music industry, in favor of a tax on streaming revenues and who deplore the lack of progress on the subject.
On June 21, the day of the Music Festival, President Emmanuel Macron raised the prospect of a tax on streaming revenues if the music industry did not agree on new funding routes for the National Center of music (CNM). The deadline of September 30 had been set. After this date, the government reserved “thepossibility of submitting to Parliament a compulsory contribution from streaming platforms”, according to a press release from the Elysée.
“The absence of government arbitration” in the matter is today denounced by the Union of Independent French Phonographic Producers (UPFI), the Syndicat des musiques contemporains (SMA) and the National Union of Musical and Variety Shows Prodiss. These three organizations looked favorably on the report by former senator Julien Bargeton (Renaissance), submitted in April. The latter recommended a tax of 1.75% on revenue from paid music streaming and free music streaming financed by advertising.
“Worst possible scenario”
“The government is preparing to deliver to the President of the Republic the worst possible scenario, that of a wait-and-see attitude,” now fear the UPFI, the SMA and the Prodiss. Beyond the fear of a project remaining a dead letter, these three organizations fear that the project of a compulsory tax will turn into a voluntary contribution project. “It wouldn’t be fair.”Malika Seguineau, from Prodiss, told the press.
This question of a streaming tax has divided the French music industry for more than a year. A new image of a broken family was shown on Friday. A major debate was planned between all points of view as part of the MaMA Parisian music festival. The UPFI, the SMA and the Prodiss refused to go to a “discussion” who according to them has “any sense” in the absence of government arbitration.
Other players in the sector, opposed to the Bargeton report, such as Bertrand Burgalat, president of the National Phonographic Publishing Union (Snep) and Antoine Monin, head of Spotify France – also representative of the Union of Online Music Service Publishers (ESML) – still went there to speak. Antoine Monin notably said he was open to a voluntary contribution – “the idea is to be able to satisfy the demand of the State” – without saying more, while “discussions are taking place.”