O Spotifyone of the leading music streaming platforms, has confirmed its departure from Uruguay from January 1, 2024, in response to recent changes to the South American country’s copyright legislation.
In a statement released on Monday (20), a spokesperson for the platform explained that the decision to close operations by February next year was motivated by the ‘Rendición de Cuentas’ bill, which was recently approved.
This proposal, presented by the Uruguayan Society of Interpreters (SUDEI), introduced changes to articles 284 and 285 of Uruguayan copyright legislation.
Spotify’s fear on Uruguayan soil
Spotify expressed concerns regarding possible additional costs that could fall on the streaming platform due to the new legislation.
The company argued that establishing ‘equitable remuneration’ could result in double payments for the same song, making its business modelwhich aims to connect artists and fans, unsustainable.
Spotify’s spokesperson stated that the platform already allocates almost 70% of every dollar generated from music to record companies and publishers responsible for copyright, contributing more than US$40 billion to date.
However, he claims that any additional payment would make the business unviable.
Image: Spotify/Reproduction
On the other hand, representatives of the association that defends musicians stated that platforms will not have to make a ‘double payment’, but rather provide fairer and more equal remuneration for both music creators and themselves.
Additionally, Spotify recently announced that, starting in 2024, each song must be played a minimum of 1,000 times per year for royalties to be paid, adding new requirements for royalty payments.
Spotify’s departure from Uruguay It represents not only an impact for the platform, but also raises significant questions about the complexity of copyright and financial sustainability in the music streaming landscape.
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