The National Music Center (CNM) has introduced its 2025 budget of 137.6 million euros, aiming for sustainable funding amidst industry skepticism. Criticism arises from plans to cut the ticket tax return from 65% to 60%, funding selective aids for diverse music creation. Unions representing live performance sectors oppose this move, citing systemic issues. Additionally, a new streaming tax is projected to underperform, prompting concerns over the CNM’s overall strategy and the need for an economic model overhaul in the festival sector.
National Music Center’s 2025 Budget: A Step Towards Sustainable Funding
This week, the National Music Center (CNM) unveiled its 2025 budget, marking a significant milestone aimed at securing sustainable funding for its essential missions. However, beneath this polished exterior, “the common house of music” reveals underlying fractures. During a board meeting on Monday, the CNM approved a budget totaling 137.6 million euros under the oversight of the Ministry of Culture. This budget, stemming from a merger of previous entities in 2020, allocates a substantial portion (117.8 million euros) to support its aid program.
Voices of Dissent Emerge
Despite the CNM’s announcement of a financial strategy designed to provide sustainable funding for its initiatives in the music sector, skepticism quickly arose. This criticism comes at a crucial time when the industry is working to navigate the aftermath of the health crisis, with the 2024 budget still reliant on over 28 million euros in exceptional credits. Among the various sources of public and private funding, live performances stand out, with a 3.5% ticket tax contributing approximately 50 million euros in 2023.
Traditionally, 65% of this ticket tax was returned to contributors through a mechanism known as “drawing right.” However, starting January 1, the CNM plans to reduce this percentage to 60%, thereby increasing the funds available for selective aids. These aids are intended to support diverse musical creation and promote international development or ecological transition. This decision has ignited backlash from the private live performance sector.
The Ekhoscènes union, representing entrepreneurs in this domain, opposed the 2025 budget, asserting that it is being unfairly tasked with addressing systemic issues beyond its control. They emphasized that while the private live performance sector values solidarity, equity within the music industry must be prioritized. Similarly, the Independent Scene union, which is excluded from decision-making processes, rejected the notion of the drawing right being used as a variable to adjust the CNM budget, arguing that the budget is skewed due to the insufficient revenue from the streaming tax.
Implemented after rigorous discussions, this streaming tax, affecting both free and paid content-sharing platforms, is expected to yield 9.3 million euros in 2024—38% below expectations. Nonetheless, compliance among certain entities remains lacking. CNM President Jean-Philippe Thiellay expressed optimism, stating that “the 15 million euros will be reached next year,” once the system stabilizes. He emphasized the CNM’s ongoing commitment to support music and variety companies amid a landscape that remains fragile yet evolving.
While stakeholders agree on the need for solidarity within the sector, doubts persist regarding the CNM’s approach. An executive from a prominent music industry player quipped, “the common house of music is a haunted house; you shouldn’t enter.” In addition to consolidating its support, the CNM faces pressing challenges in the upcoming year, including the urgent need to revamp the economic model of festivals.