The relationship between Spotify and artists has been a hot topic for years. Recently, Uruguay brought a bill to the table to address this issue, but Spotify is threatening to leave the country if certain aspects of the law are not changed.
Uruguay’s government voted on a draft budget in October that included two articles on online streaming media.
Article 284 stipulates that social networks and the Internet will be added “as formats in which the performer is entitled to financial remuneration when a song is played”.
Article 285 stipulates “Right to fair and appropriate remuneration” which are added to the copyright law. These articles refer to authors, composers, performers, directors and screenwriters.
According to the Guardian, Spotify said this on November 20th “will begin phasing out its service in Uruguay from January 1, 2024.”
Spotify states that “It already pays nearly 70% of every dollar it makes from music to the record labels and publishers that own the rights to the music and who represent and pay artists and songwriters.
The company wants the Uruguayan government to clarify whether the responsibility for paying additional costs lies with rights holders or streaming platforms. He argues that higher pay for artists is needed “Pay twice for the same music” and that additional payments from you would make your business “unsustainable.”
In short, Spotify tacitly admits this If these rules come into effect, you will not be able to continue your current business. It is not yet known whether the Uruguayan government will reconsider and adapt the articles in question.