(CTN News) – Spotify, the leading music streaming platform, has announced its decision to discontinue its services in Uruguay following the implementation of a new music copyright law.
This legislation, which emphasizes the importance of providing “fair and equitable remuneration” to authors, composers, performers, directors, and screenwriters, has prompted Spotify to reevaluate its operations in the country.
The Uruguayan parliament recently passed a budget bill that introduced two new articles, namely Article 284 and Article 285, as reported by The Guardian.
Article 284 specifically highlights the inclusion of social networks and the internet as platforms that warrant financial compensation for performers when their songs are reproduced.
This means that even sharing a link to a song online would entitle the performer to receive remuneration.
As a result of these new regulations, Spotify has made the difficult decision to phase out its services in Uruguay. While this may disappoint music enthusiasts in the country, Spotify’s move reflects its commitment to complying with local laws and ensuring fair compensation for all stakeholders involved in the creation of music.
Spotify announced on November 20th that if the 2023 Rendicion de Cuentas law remains unchanged, the streaming platform will regretfully start discontinuing its service in Uruguay from January 1st, 2024.
Furthermore, it will completely withdraw from the market by February 2024, as stated in the report.
Spotify has recently announced its updated streaming payment policies for artists and labels.
These policies aim to address issues such as fraudulent streaming, the inclusion of “noise” content like rain and sea sounds in the minimum track length that qualifies for payment, and a contentious decision to remove royalties for songs with less than 1,000 streams. On average, these songs generate 2.39 pounds per year.