Spotify ‘to phase out its service in Uruguay’ from January 1, 2024 over music copyright law changes

Final month, music streaming big Spotify threatened to withdraw its service from Uruguay over proposed amendments to music copyright legislation available in the market.

The modifications have been initiated by the Uruguayan Society of Performers (SUDEI) earlier this 12 months, advocating for revisions to the South American nation’s music copyright rules.

In October, the Parliament of Uruguay voted on a finances invoice that included these proposed adjustments, Articles 284 & 285 within the Rendición de Cuentas legislation.

That invoice (Rendición de Cuentas) has since handed, and a Spotify spokesperson mentioned in an announcement on Monday (November 20) that, “With out readability on the adjustments to music copyright legal guidelines included within the 2023 Rendición de Cuentas legislation” the streaming platform “will, sadly, start to section out its service in Uruguay efficient January 1, 2024.”

Spotify says that it’ll then “totally stop” service available in the market by February 2024.

The readability Spotify seems to need affirmation on is whether or not or not “any extra prices are the duty of rights holders” or if these “extra prices” will should be paid for by streaming platforms.

As defined right here by Bloomberg Línea, Article 284 will see ‘social networks and the Web [added] as codecs for which, if a track is reproduced, the performer is entitled to monetary remuneration’.

Bloomberg Línea defined additional that the introduction of the broader centered Article 285 will set into copyright legislation 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 information outlet El Pais again in August, Spotify despatched a letter to the Minister of Schooling and Tradition, Pablo Da Silveira in July, arguing that the proposed adjustments suggest “a further necessary cost for music providers”.

In different phrases, Spotify argues that the introduction of this so-called equitable remuneration available in the market by way of the amendments to music copyright legislation in Uruguay implies that the streaming service might be required “to pay twice for a similar music” – a transfer SPOT says will jeopardize its operations within the Uruguayan market.

“Modifications that might power Spotify to pay twice for a similar music would make our enterprise of connecting artists and followers unsustainable, and regrettably leaves us no selection however to cease being accessible in Uruguay.”

Spotify spokesperson

On Monday (November 20), by way of an announcement issued by a Spotify spokesperson pointing to an absence of readability across the adjustments to Uruguay’s copyright legal guidelines within the now-passed invoice, the corporate said that “adjustments that might power Spotify to pay twice for a similar music would make our enterprise of connecting artists and followers unsustainable”.

The Spotify spokesperson added that this lack of readability “regrettably leaves us no selection however to cease being accessible in Uruguay”.

You possibly can learn the assertion from Spotify’s spokesperson in full under:

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“With out readability on the adjustments to music copyright legal guidelines included within the 2023 Rendición de Cuentas legislation – confirming that any extra prices are the duty of rights holders – Spotify will sadly start to section out its service in Uruguay efficient January 1, 2024, and totally stop service by February, to the detriment of artists and followers.

“Spotify already pays almost 70% of each greenback it generates from music to the document labels and publishers that personal the rights for music, and symbolize and pay artists and songwriters.

“Any extra funds would make our enterprise untenable. We’re proud to be their largest income driver, having contributed greater than $40B so far. And due to streaming, the music trade in Uruguay has grown 20% in 2022 alone.

“We need to proceed giving artists the chance to attach with listeners, and Uruguayan followers the chance to take pleasure in and be impressed by their music.

“Modifications that might power Spotify to pay twice for a similar music would make our enterprise of connecting artists and followers unsustainable, and regrettably leaves us no selection however to cease being accessible in Uruguay.”

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Uruguay was the world’s 53rd largest recorded-music market in 2022, with revenues of $13.2 million (up 20.2% YoY) and music streaming accounting for 64.4% of these revenues, based on IFPI information, as reported by Music Ally final month.

Spotify claims that “due to streaming, the music trade in Uruguay has grown 20% in 2022 alone”.

Whereas solely a smaller participant within the international music enterprise, the talk round introducing Equitable Remuneration into copyright legislation in Uruguay might be watched carefully in different markets corresponding to within the UK (the world’s third-largest recorded music market) for instance, the place the notion of introducing ‘ER’ is a matter of serious contention.

Music Enterprise Worldwide