Spotify hikes subscription price in France by 1.2% to match new music-streaming tax

Spotify has hiked the price for its premium subscription in France by an eye-watering €0.13 in response to a music-streaming levy imposed by the government at the start of the year.

At €11.12 per month for an individual subscription plan, the new price is 1.2% higher than the previous amount — the same as the 1.2% levy that France imposed on music-streaming companies including Deezer, Apple, Google, and Spotify starting from January 1 this year. The 1.2% increase applies to all of Spotify’s subscription plans, including student, family and duo.

France introduced the new levy as a way to support the country’s music sector, and proceeds from the tax will be directed toward the Centre National de la Musique (CNM), which was established four years ago.

In response, Spotify revealed at the tail-end of last year that it was pulling financial support for local French music festivals, including Les Francofolies de la Rochelle and the Printemps de Bourges. The company had also said it would increase the prices in France, though it hadn’t revealed by how much. In a statement provided to TechCrunch at the time, Spotify said the move was designed to offset the costs of this tax, so it’s no surprise that the new price exactly matches that of the levy.

While the increase is unlikely to force consumers to ditch their premium subscriptions, this move now puts France among the priciest countries for Spotify in the Eurozone.