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Spotify has reversed course on a decision to leave the Uruguayan market , after gaining assurance from the government that copyright constabulary changes it ’s introducing wo n’t leave in Spotify incurring extra price .
For those not following all the loss - ons in Uruguay ’s music - rain cats and dogs view , the saga unfold something like this . Last October , Uruguay passeda new lawthat stipulate , among other things , that artists should receive “ fair and equitable ” remuneration for their work . As far is record euphony is concerned , this did n’t purely mean the master “ featured ” artist , but everyone on a recording , from composers and performer to session musicians and beyond .
The way out , as far as Spotify was concerned , is that it claimed to already pay around 70 % of every dollar it yield from euphony to record label and publishers . As such , the company attempt clarity on who would expect responsibleness for paying artists who may have conduce to a record — it wanted to ensure that the people it already pays money to straightaway assumed the responsibility for come forth payments to whoever else the new law of nature may cover , from the money they already receive .
“ The change in this broadside could impel Spotify to make up twice for the same songs and unless the politics make it clear that record labels and publishers to whom we pay that ~70 % should yield the province for these costs , this will make our business sector of plug into creative person and devotee unsustainable , ” the company write in ablog postthis month .
As a result of all this , Spotify confirmed that it would begin phase out its service in Uruguay starting January 1 , 2024 , with the full and final closure taking place a calendar month subsequently .
Exit stage left
Spotify ’s endeavour to put the blame for its impending exit at the government ’s threshold sour , too , with more than 40,000 people subsequentlysigning a petitiondemanding that the Uruguayan government undertake the “ permanence of Spotify in our state . ”
President Luis Lacalle Pou was thrust into the affray , telling reportersthat the government was “ in talk ” to address the billet , saying : “ You have to be balance — we empathize that it is a very important platform , ” news program outlet Teledocereportedat the time .
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So irrespective of who was to charge for the situation , it was turn into a political headache , one that has now seemingly been resolve by assurances that Spotify wo n’t be held nonimmune for any further cost as it refer to artist payments .
“ The Uruguayan government has demonstrated that it recognizes the note value Spotify provides to local artists , songwriter , and fans , ” Spotifywrote in a post today . “ The clarification to the recent alteration in music copyright law stand for that the rightsholders — to whom Spotify already pays roughly 70 % of every dollar it yield for euphony — should be responsible for these cost . ”
