Spotify to end service in this country due to bill requiring fair pay for artists

Spotify, the prominent music streaming platform, announced its intention to discontinue its services in Uruguay following the implementation of a new music copyright bill. This bill mandates "fair and equitable remuneration" for various creative contributors such as authors, composers, performers, directors, and screenwriters.

The bill, comprising Article 284 and Article 285, was part of the country’s budget legislation approved by parliament in October, as reported by The Guardian.

Article 284 broadens the scope of financial remuneration for performers by including social networks and the internet as platforms for song reproduction. Specifically, performers are entitled to remuneration if a song link is shared online.

Article 285 establishes the right to fair and equitable remuneration for agreements involving public communication and making phonograms and audiovisual recordings available to the public. This applies to authors, composers, performers, directors, and screenwriters.

Consequently, Spotify responded on November 20, stating its plans to phase out its service in Uruguay starting January 1, 2024, unless amendments are made to the 2023 Rendicion de Cuentas law. The streaming giant intends to conclude its operations in the market by February 2024, as detailed in the report.

This development coincides with Spotify's introduction of new payment policies for artists and labels. These policies aim to combat fraudulent streaming, establish a minimum track length for remuneration (including content like rain and sea sounds), and notably, eliminate royalties for songs with fewer than 1,000 streams, which typically earn around 2.39 pounds per year.

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