this post was submitted on 28 Sep 2024
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[–] powerofm 15 points 5 months ago (3 children)

Unfortunately, that 5% fee means Spotify prices are going up 10%

[–] theacharnian 10 points 5 months ago (1 children)

Sure. That just means that Canadian consumers of Spotify will be indirectly subsidizing Canadian artists.

[–] [email protected] 4 points 5 months ago* (last edited 5 months ago)

I see no problem here.

Well, assuming you see having domestic content as a valid goal, anyway, which isn't necessarily a given.

[–] Auli 6 points 5 months ago (1 children)

Sure but then they pay more taxes. Increase in price means more revenue which means more taxes. It’s just a circle.

[–] [email protected] 2 points 5 months ago* (last edited 5 months ago)

That's why they raise it by 10%, not 5%.

Say sub is currently $100/year, they now have to pay $5, they get $5 less. If they raise by 5% to $105, they have to pay $5.25, they get 25c less than originally. But if they raise to $110, they have to pay $5.50, and suddenly they are getting $4.50 more than before, even though they are paying more taxes. And they can blame it on this so people don't hate them as much and accept it.

[–] [email protected] 3 points 5 months ago (1 children)

If I remember something kn my econ 101 class, they're going up 2.5%, because taxes are not entirely pass to the consumer, they take a part of the company earnings too.

[–] phoenixz 4 points 5 months ago

He ce Spotify prives going up 10, to make sure company profits are covered and then some