Uruguay is close to passing a bill that would seek to do so compensate artists fairly for the reproduction of their music. But to the services of streamingas Spotifyit doesn’t seem viable for their business.
The problem arises from two specific articles, raised in the government’s bill Luis Lacalle Pou. One of the articles mentions that The reproduction of music shared via the Internet and social networks must be reimbursed to the artist.
Another measure establishes that among artists and composers “the right to fair and equitable compensation for its exploitation”.
The President of the Copyright Council of Uruguay, Ignacio Martínezassured EFE that the platforms “will have to see how they make an even distribution of artists, artists, artists who deserve it, who need it.”
However, Spotify has already threatened to withdraw its service from Uruguay if the bill is passed.
“If (the changes) are implemented and Spotify is forced to pay twice for the same music, our job of connecting artists and fans would be untenable in this market. Spotify would have no choice but no longer available in Uruguayat the expense of artists and fans,” a spokesperson for the streaming company told El Observador.
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“Thanks to streaming, the music industry in Uruguay will grow by 20% in 2022 alone. (…) If those articles are included in this bill and Spotify is forced to pay twice, We have no choice but to suspend service in Uruguay,” the company added.
After agreement in the Senate, Spotify repeats: “We have no choice but to suspend the service in Uruguay” https://t.co/v3J41SONHq
— The Observer (@ObservadorUY) October 2, 2023
According to Infobae, for every view of a song on Spotify, the company keeps 30% of the profit and the remaining 70% is distributed among the song’s owners. That includes not only the artist, but also the record label.
That means for every game artists receive approximately USD 0.0007. (JO)
Spotify threatens to leave Uruguay if 2 accountability articles are approved. They say that artists lose out. Spotify pays $0.0007 per play. If a song is played a thousand times, the artist charges a maximum of $28. It’s not a lot of work for the artist. pic.twitter.com/7GCLAxzYWp
— Caalf02 (@Caalf02) October 2, 2023
Source: Eluniverso

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