Spotify to Raise Prices in Canada Amid Fight Over Streaming Tax

By Paul Vieira

OTTAWA--Spotify has started notifying its Canadian customers that prices for premium services are going up, months after Canada's broadcast regulator unveiled plans to slap a 5% tax on streaming companies' domestic revenue.

Executives for Spotify and the chief lobbyist for streaming services had previously warned of the potential of higher prices in Canada due to government policy targeting foreign streaming companies, aiming to ensure Canadian content is showcased on digital platforms and streamers make financial contributions to the domestic entertainment industry.

A spokesman for Spotify said changes to prices for premium services "reflect local macroeconomic factors and meet market demands while offering an unparalleled service." The spokesman added that Spotify, along with other foreign streaming services, is asking the courts to block the streaming tax, and declined to comment further about the levy.

Canadian officials have said the 5% tax, on streamers' Canadian sales, would help fund broadcast news in the regions, and video and audio content for indigenous and francophone communities.

In testimony about a year ago before the Canadian Radio-television and Telecommunications Commission, a senior Spotify executive, Olivia Regnier, said imposing additional costs on the streaming company, without taking into account the investments to date in Canada, "will force us to make unavoidable choices to maintain our financial viability. They could force us to cut costs ... or even increase our prices for Canadian consumers."

In March, Spotify increased prices for subscribers in France after French officials imposed a tax targeting streaming services to help foster the domestic music sector.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

October 02, 2024 18:19 ET (22:19 GMT)

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