French live association Prodiss has welcomed the introduction of a new tax on music streaming services in France to support the wider sector.

The move, which comes into effect in 2024, has been announced by the government following “several months of consultation”. It will directly finance the National Music Center (CNM), which was created in 2020 to help the music industry’s various stakeholders, including labels, publishers, venues and promoters.

“The tax contribution of subscription streaming platforms and free content sharing platforms will be 1.2% of their turnover in France,” reads a press release from the Ministry of Culture. “Platforms with a turnover of less than €20 million will not be subject to this new contribution, which is expected to bring in €15 million in 2024.”

According to Tous Les Festivals, the CNM is currently funded by a 3.5% levy on ticket sales for shows, a contribution from the state to cover operating costs, and support from rights management organisations.

Prodiss director Malika Séguineau has backed the move, saying it is “the only device which allows the CNM to be provided with sustainable and balanced financing”.

“We are delighted that the government has taken this decision, supported by deputies and senators,” says Séguineau. “After long months of consultation and discussions, we must now look to the future, with a fully operational CNM from 2024 serving the ambition for the music industry.”

“France will no longer be a priority for Spotify”

However, the announcement has been criticised in a joint statement by giants Apple, Deezer, Meta, Spotify, YouTube and TikTok, which claim they have reached an agreement to raise a voluntary contribution of more than €14m in 2025.

According to the IFPI, France is the world’s sixth largest recorded music market, generating €920m in recorded music revenue in 2022.

“We take note of the government’s decision, which does not take into account the efforts made by many platforms including Spotify,” a Spotify spokesperson tells AFP, via Euronews. “This is a real blow to innovation, and to the growth prospects of recorded music in France. We are evaluating the follow-up to be given to the implementation of this inequitable, unjust and disproportionate measure.”

In addition, Spotify France CEO Antoine Monin describes the tax as “a monumental strategic error which goes against the issues of economic, cultural and European technology”, and warns the firm will “disinvest in France and will invest in other markets”.

“France does not encourage innovation and investment,” he tells Franceinfo. “France will no longer be a priority for Spotify.”

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Spotify has announced it will start integrating virtual concert listings into its music streaming platform.

In a Spotify for Artists blog post yesterday (15 September), the streaming giant said it has partnered with Songkick and Ticketmaster to introduce virtual event listings for individual artist profiles, as well as its main concerts page.

“With many tours postponed until 2021, the necessity for these virtual events is set to continue, and we want to make it easy for Spotify listeners to learn about virtual events for the artists they love, as well as artists they’re discovering for the very first time,” reads the post. “In light of this, we’ve leveraged our partnership[s] with Songkick – the livestream concert discovery app – and Ticketmaster to make it happen.”

“We want to make it easy for Spotify listeners to learn about virtual events”

The announcement confirms earlier rumours that Spotify was working on a virtual event discovery feature to build on its existing concert listings.

Artists are encouraged to list future livestreams through concert discovery platform Songkick, as they will populate artist pages automatically. “Select” Ticketmaster events will also be automatically listed.

Spotify will also mail users recommendations for virtual concerts, which can be staged on any platform – including Twitch, Instagram Live and YouTube – as long as they are listed through Songkick or Ticketmaster.

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Live music virtual reality platform MelodyVR is acquiring Rhapsody International, which operates as music subscription service Napster.

The US$70 million acquisition will eventually combine Napster’s library of over 90 million audio tracks and Melody VR’s catalogue of virtual live music shows, to create a platform where users can stream music and experience immersive live performances.

“For music fans today, live and recorded music are intrinsically linked. We are as keen to see our favourite artists perform live as we are to listen to their albums,” says MelodyVR CEO Anthony Matchett.

“Our purchase of Napster, one of the music industry’s original disruptors, is born out of our wish to deliver the world’s foremost music experience, available seamlessly across audio and visual media and in turn presenting a truly next-generation music service.”

Napster CEO Bill Patrizio commented: “This is a tremendous outcome for two organizations with complementary platforms and loyal audiences, and we could not be more excited to be moving forward as one company.”

“Our wish is to deliver the world’s foremost music experience… a truly next-generation music service”

“The product, technology and cultural synergies of Napster and MelodyVR will bring tremendous innovation for music lovers, artists and the entire music industry. Good things come from being together, and we look forward to creating a powerful platform that combines our strengths and offers an even wider range of content to consumers, creators and advertisers.”

The UK-based MelodyVR broadcast its first live concert in virtual reality in 2018 with Liam Payne in London, after releasing its app – touted as the world’s first dedicated virtual reality (VR) music platform – in 2019, and subsequently partnering with O2 in the UK.

Since Covid-19 hit the industry, the company has delivered a digital edition of Wireless festival in London and live music VR series, Live from LA, which has featured artists including Cypress Hill, Kesha, John Legend and Tori Kelly.

The shows were available to watch in 360° for free via the MelodyVR app and VR headsets.

MelodyVR and Napster, which is currently 84% owned by RealNetworks, will operate independently for the foreseeable future.

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