Worldwide streaming app, Spotify has confirmed that it will withdraw its services from Uruguay from the start of 2024. This is a consequence of a bill requiring fair pay for artists.
The bill is titled “Rendición de Cuentas” and was introduced recently this year by the Uruguayan Society of Performers.
This bill requires “fair and equitable remuneration” for diverse creative content creators such as authors, artists, screenwriters, and directors. It comprises amendments made to Article 284 and Article 285 and was approved by the parliament in October.
Earlier this year, Spotify threatened to close in Uruguay due to the new amendment. Spotify claims these “lacked clarity” and “would pay twice for music use in that country.” Now, a spokesperson has confirmed on November 20, 2023, that Spotify will begin to phase out its services from January 1, 2024, and all operations will cease by February.
Spotify said: “Without clarity on the changes to music copyright laws included in the 2023 Rendición de Cuentas law – confirming that any additional costs are the responsibility of rights holders – Spotify will unfortunately begin to phase out its service in Uruguay effective January 1, 2024, and fully cease service by February.”
“Spotify already pays nearly 70% of every dollar it generates from music to the record labels and publishers that own the rights for music and represent and pay artists and songwriters. Any additional payments would make our business untenable. We are proud to be their largest revenue driver, having contributed over $40B to date. And because of streaming, the music industry in Uruguay has grown 20% in 2022 alone.”
This action by Spotify aligns with its other latest payment policies for artists and labels. Such as establishing a minimum song length to be eligible for remuneration. Moreover Spotify is even eliminating royalties for songs with fewer than 1000 streams.
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