Music streaming large Spotify is contemplating withdrawal from Uruguay if proposed amendments to music copyright legal guidelines are ratified.
The modifications had been initiated by the Uruguayan Society of Performers (SUDEI) earlier this 12 months, advocating for revisions to the nation’s music copyright rules. The proposal seeks to allow performers to obtain compensation for reproductions on platforms corresponding to Spotify and YouTube.
This week, the Parliament of Uruguay is voting on a price range invoice that features these proposed modifications (Articles 284 & 285 within the Rendición de Cuentas).
Based on native publication El Observador, SUDEI efficiently lobbied for the inclusion of two articles in Uruguay’s ‘Rendición de Cuentas’—Articles 284 and 285 — by the Government Department of the federal government.
SUDEI spokesperson Gabriela Pintos advised El Observador on the time that the group isn’t towards the platforms, however is campaigning for the honest distribution of income.
As defined by Bloomberg Línea, Article 284 would see ‘social networks and the Web [added] as codecs for which, if a music is reproduced, the performer is entitled to monetary remuneration’.
Bloomberg Línea explains additional that the introduction of the broader targeted Article 285 would set into copyright regulation the ‘proper to a good and equitable remuneration’ for all ‘agreements entered into by authors, composers, performers, administrators and screenwriters with respect to their school of public communication and making accessible to the general public of phonograms and audiovisual recordings’.
As reported by El Pais, Spotify despatched a letter to the Minister of Training and Tradition, Pablo Da Silveira in July arguing that the proposed modifications suggest “an extra necessary cost for music providers”.
In different phrases, Spotify argues that if the amendments are made, it might probably be required “to pay twice for a similar music,” a transfer SPOT claims might jeopardize its operations within the Uruguayan market.
“If carried out, and Spotify had been pressured to pay twice for a similar music, it might make our enterprise of connecting artists and followers unsustainable on this market. Spotify would then don’t have any selection however to cease being accessible in Uruguay, to the detriment of artists and followers,” the corporate stated in an announcement issued to MBW.
“If these articles are included on this invoice and Spotify is pressured to pay twice, we can have no selection however to stop service in Uruguay.”
Spotify
Added Spotify: “Spotify pays almost 70% of each greenback it generates from music to the file labels and publishers that symbolize and pay artists and songwriters, and we’re their largest income driver, having contributed greater than $40 billion so far.
“And due to streaming, the music trade in Uruguay has grown 20% in 2022 alone. We wish to proceed giving artists the chance to dwell off their artwork and Uruguayan followers the chance to take pleasure in and be impressed by it.”
Spotify issued a warning in its letter to Uruguay’s Ministry of Training and Tradition, cautioning of potential withdrawal from the market if the proposed modifications are enacted.
The Latin American Web Affiliation (ALAI) echoed Spotify’s issues, cautioning senators that the modifications might considerably impression varied sectors, together with civil society, the cultural trade, schooling, analysis, and technological growth.
The Parliament of Uruguay is ready to deliberate on the proposed modifications inside the price range invoice this week. Spotify reiterated its stance, saying ina. assertion to MBW: “If these articles are included on this invoice and Spotify is pressured to pay twice, we can have no selection however to stop service in Uruguay.”
The event comes as Spotify continues to take care of its dominant positioning within the Latin American streaming market.
Based on Netscribes, Spotify held an 83% share of the market in 2021. Information from Statista confirmed that Spotify had 46.2 million Premium subscribers in Latin America within the second quarter of 2023.
Spotify added a complete of 10 million Premium subscribers globally within the second quarter, “led by Europe and Latin America,” the corporate said in July.
