Spotify to Cease Service in Uruguay Due to Copyright Law Changes: Impact on Artists and Fans

2023-11-21 01:41:16

The leading global music streaming platform Spotify announced this Monday, November 20, that it will stop providing its service in Uruguay as of February 2024 due to changes in copyright legislation.

The multinational, of Swedish origin, made this determination in light of the changes recently introduced in Uruguayan regulations, which They would enable artists to demand compensation from the platforms for the reproduction of their work.

“Given the lack of clarity regarding changes to copyright laws included in the Accountability Law of 2023 (…), Spotify will unfortunately begin to phase out its service in Uruguay starting January 1, 2024 , and will completely cease service in February, to the detriment of artists and fans,” the company said in a statement.

The platform, in addition, He indicated that “he already pays regarding 70% of every dollar he generates from music to record companies and publishers.”, owners of the rights to the music, and who represent and pay artists and composers.” “Any additional payment would make our business unsustainable,” she added.

“Changes that might force Spotify to pay twice for the same music would make our business of connecting artists and fans unsustainable, and unfortunately leaves us no choice but to stop being available in Uruguay,” he concluded.

Spotify had already threatened to stop operating in Uruguay during the debate on the bill. So, He pointed out that the distribution of royalties is an issue that production companies and performers must resolve.

The new Accountability law will come into force on January 1, but it has not yet been regulated.

The Minister of Education and Culture, and head of the portfolio in charge of regulation, Pablo da Silveira, told the newspaper La Diaria last month that following the approval of the law A consultation period would be opened on its application.

“The best possible solution will be sought,” he assured then when he asked “not to take Spotify’s threats too seriously.”

The Uruguayan Society of Performing Artists (Sudei), which exercises the rights enshrined in national legislation, He said Monday that he was analyzing the situation.

For its part, the Uruguayan Record Chamber (CUD) warned that the departure of Spotify would harm the entire national music industry.

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