Spotify starts divesting from France in response to new music-streaming tax
techcrunch.com
techcrunch.com
[0] https://en.wikipedia.org/wiki/Patois
[1] https://en.wikipedia.org/wiki/Occitan_language#Preservation
[2] Similar to the concept of a keystone predator, see https://en.wikipedia.org/wiki/Keystone_species
The white French government is mad that their previous imperial subjects are now really defining what French will be into the future.
whats wrong?
“Spotify will have the means to absorb this tax, but Spotify will disinvest in France and will invest in other markets,” Monin said in an interview with FranceInfo last week. “France does not encourage innovation and investment.”
What will the CNM (Centre National de la Musique) do? Could it be encouraging “innovation and investment” in France? While Spotify loses some profit and share price, but then may have to innovate and invest in this new business environment.
Source: myself, looking at starting a company there.
While you personally may be able to overcome this, the net result across the macro economy is one of stagnation and slow growth. It does not encourage innovation. Such is the situation in France.
[0]: https://en.wikipedia.org/wiki/List_of_countries_by_governmen...
So perhaps there is worthwhile innovation happening in the EU after all?
Mississippi, one of the poorest US states and one widely panned for having "backwards" economic policies (meaning low levels of redistributive taxation), has a higher median household income at nearly $53k[0] than Germany, the country with the best economy in egalitarian Europe, at roughly $46k[1]. So it's definitely not just yacht-owners that are the beneficiaries of economic growth in a laissez-faire capitalistic country.
[0]: https://www.census.gov/quickfacts/fact/table/MS/BZA115221
[1]Mississippi PER CAPITA income: 29K [2]Worst German State PER CAPITA income: 34K
I have no idea what All About Berln is, and when I looked into their dataset it was...confusing. So I went to Wikipedia. I think you were comparing Household vs Per capita?
Either way, Mississippi isn't the doing as well you're claiming. They also have a 19% poverty rate [1] compared to Germany's 11% [3].
[1]https://www.census.gov/quickfacts/fact/table/MS/BZA115221 [2]https://en.wikipedia.org/wiki/List_of_German_states_by_GRP_p... [3]https://www.statista.com/topics/10455/poverty-in-germany
It's always nice to see a country push back on the tech/intellectual property equivalent of the East India Company concept. Colonialism and empire building isn't dead, it simply expresses itself as multinationals on top of capital markets in the current incarnation. Don't invite the vampire in. When someone says "GDP" or "growth," politely ask them to show whom is benefiting (and to what degree) from numbers championed from a spreadsheet.
(i am sympathetic to the plight of your run of the mill, well intentioned startup founder focused on problem solving, but also not blind to the bulldozers I mention above)
Spotify's CEO is worth ~$3B while artists make pennies. Why would you incentivize such a structure unless your mental model tilts towards that being acceptable? I'm not saying this should be free or a utility, but it should probably be a business of a couple hundred people with a reasonable valuation target. As a nation state, you can say no. Europe does this, China does this. It can be done. "I would like to submit a bug report." The only people wringing their hands are those who would profit from the VC/tech fuckery ecosystem extending its reach. Don't let them; cut them tentacles seeking a moat/regulatory capture/entrenchment right off.
We can do better, and I feel no shame in stating such a position.
https://www.google.com/search?q=quality+of+life+france+vs+us
https://www.cnn.com/2010/WORLD/europe/02/11/france.quality.l...
https://www.expat.hsbc.com/expat-explorer/expat-guides/franc...
https://www.oecdbetterlifeindex.org/countries/france/
https://www.brookings.edu/articles/should-we-try-to-live-lik...
It's about power. Always was, always is (once you're passed a certain fiat amount; only so much "line goes up" before it no longer matters). As Theodore Roosevelt said about highest tax bracket taxpayers who might leave the country, "we wish them well!" Call the bluff of these people, they're the ones with something to lose. If they push too hard, make them lose.
The rules are flexible, all of this (economic systems) is a shared delusion. Be mindful of this when negotiating and operating within the system.
That sounds like the market signaling an underproduction of streaming services and an overproduction of musicians. A levy on streaming services earmarked for French artists pushes the market further into disequilibrium, giving people less of what they want and more of what they don’t want.
> https://www.numbeo.com/quality-of-life/compare_countries_res...
And then this
>https://www.oecdbetterlifeindex.org/countries/france/
shows USA as having in some ways having dramatically higher quality of life metrics, and minimally lacking only in a couple of ways.
I think it's sad because the problems France has could easily be fixed by liberalizing and minimizing the economics. But the french people are extremely against that and so it will practically not happen. And France is rich enough due to historical reasons that it'll probably never be compelled to do so.
Of course, USA should really be compared with EU, not a state like France. Comparing individual US states to France would be more accurate. Unfortunately, such metrics aren't usually available since USA is always considered a single entity in these reports.
Of course you think that government spending is useless if your reference is the US. It's a country that is useless at serving its citizens.
> Deezer CEO Jeronimo Folgueira called the tax “the worst possible outcome of all the different scenarios” the company faced from the French government. “Adding taxes is the worst way of trying to support the industry,” he told Billboard.
https://www.billboard.com/pro/deezer-stock-down-france-tax-s...
Some searching has led me to the end of year recaps and a lot about advertising. Guess France will miss out.
Piracy is a costing problem and Spotify’s solution is “keep costs to the consumer low and money in our pockets by keeping it out of the artists’ hands”. Piracy was also the leverage they originally had on the labels (better to collect 5 cents than nothing, right?) before network effect and inertia took over.
They didn’t kill piracy, they co-opted it.
The reason Spotify was able to out-compete piracy (which is ostensibly free) is because it provided a substantially better experience to users. I’m sure the artists don’t get a great deal out of it, but it seems weird to blame that on streaming. Artists losing out to big business has been the entire model of the music industry since forever.
In any case, even if you think Spotify is fundamentally evil, and their innovations are extremely harmful, that doesn’t take anything away from how innovative they were. Which is very, very innovative. They completely changed the whole music industry world wide.
> They didn’t kill piracy, they co-opted it.
Trying to claim that one company licensing a music catalog, and then selling it to consumers is “piracy” is a terrible take, and just makes you look like you have some weird and extreme views on this topic.
A private collection and a player like Clementine is so much nicer. It's not like Spotify has everything, anyway. Not even original versions of songs if anyone released an arbitrarily bad remaster.
Spotify cleaned up the legalities of it, but they weren't (and still are not) innovating.
They also have a really nice API, which has admittedly been getting more and more locked down, but to claim it was not innovative, especially at the time, is farcical. All this without even mentioning, as other posters have, their effect on legitimizing music streaming. Also, and each user has anecdotally different experiences here, their music recommendations for me are top notch. I've discovered just so, so many pieces of great music through their service.
Spotify was the first streaming service to let you listen to any type of music from any place in the world. The only place to do that before them was YouTube but this was before you could listen to YouTube videos in audio format.
Spotify has best in class discoverability with generative playlists and recommendations for any type of music. You can find Spotify generative playlist for the most niche music genres.
I uploaded a single electronic music track on Spotify 10 years ago without using a label or advertising it other than to a few friends on FB and it has 100k plays. The same song on YouTube has a few 100 plays.
Again if you just use Spotify to listen to popular music then yeah it will definitely feel like it not much compared to anything else, but if you listen to a lot of music and different types of music there is no match to Spotify.
Just sad that they are the prime distributor of music to almost everyone I know and not services like Bandcamp.
The thing about art, IMO, is that it does a great service for humanity in giving us hope, purpose, and something to live for. When you treat artists as a cost to just minimize, you make it harder for any of them to succeed at making a living doing their work. I believe that the effects of the very low streaming royalty payments will have a chilling effect on professional musicians making a real go of it.
I’ll take Napster over this any day, at least they didn’t have profits at the forefront.
These big platforms always threaten to “pull out” of markets when regulated. Facebook has pulled the same shenanigans over paying publishers and so on.
I think we should take them up on it. There are many alternatives.