Spotify has declared its decision to discontinue services in Uruguay in response to the implementation of a new music copyright bill. The legislation, integrated into the country’s budget laws sanctioned by parliament in October, focuses on ensuring “fair and equitable remuneration” for various creative contributors, including authors, composers, performers, directors, and screenwriters.
The bill’s Article 284 expands the scope of financial compensation for performers by incorporating social networks and the internet as platforms for song reproduction. Performers are entitled to remuneration when song links are shared online. Article 285 establishes the right to fair and equitable remuneration for agreements involving public communication and the availability of phonograms and audiovisual recordings to the public.
Spotify responded to this legislation on November 20, outlining its plan to phase out services in Uruguay starting January 1, 2024, unless amendments are made to the 2023 Rendicion de Cuentas law. The streaming platform intends to conclude its operations in the market by February 2024.
This decision aligns with Spotify’s recent introduction of new payment policies for artists and labels. These policies target fraudulent streaming, set a minimum track length for remuneration (including sounds like rain and sea), and notably eliminate royalties for songs with fewer than 1,000 streams, typically earning around 2.39 pounds per year. The move reflects Spotify’s response to evolving regulations and its efforts to navigate challenges in the music streaming landscape.
