In May, Mitchel Simmons, VP of Paramount of EMEA Public Policy and Government Affairs, also doubted the benefits of a UK streaming tax when speaking with the CMS committee.
“Where we have seen taxes in other areas of law on services, we see inflation in the market. Local broadcasters, in particular in places such as Italy, have established that prices have risen because there has been a forced increase in expenses and others have suffered as a result,” he said at the time.
The tax threat is largely emerging at streaming companies
Interest in the UK that places a tax on streaming services, follows on other countries that recently push comparable reimbursements for streaming providers.
For example, music streaming providers, such as Spotify, pay a tax of 1.2 percent on streaming income in France. Spotify blamed the tax for a price increase of 1.2 percent in the country issued in May. The streaming taxes from France should go to the center of National de la Musique.
Last year, Canada spent a 5 percent tax on Canadian streaming income that have stopped as companies such as Netflix, Amazon, Apple, Disney and Spotify Battle It in court.
Lawrence Zhang, head of the Center for Canadian Innovation and Competitiveness policy at the Information Technology and Innovation Foundation think tank, has estimated that a 5 percent streaming tax would lead to the average Canadian family who pays an extra approx. $ 40 annually.
A streaming provider group called the Digital Media Association has argued that the Canadian tax “could lead to higher prices for Canadians and fewer content choices.”
“As a result, you can ultimately pay more for your favorite streaming services and have less control over what you can view or listen,” says the Digital Media Association website.
Streaming companies hold their breath
Uncertainty about the American rates and their implications for the world economy have also led to streaming companies going slower than expected with regard to newcomers, technologies, mergers and acquisitions, and even business failures, Alan Wolk, co-founder and lead analyst at Tvrev today. “The fast fire character of the executive orders from the White House” has a huge impact on the media industry, he said.
