Spotify has reversed its decision to pull out of Uruguay after receiving clarification from the government regarding recent changes to music copyright laws.
The Uruguayan government has confirmed that rightsholders, rather than streaming platforms like Spotify, will be responsible for ensuring fair compensation to artists.
This means that Spotify will not be required to pay multiple times for the same content, addressing concerns the company had raised about the sustainability of such a practice.
“The Uruguayan government has issued much-needed clarification of the recent music copyright law changes, specifically that rightsholders are responsible for ensuring artists are fairly paid, rather than requiring Spotify to pay multiple times for the same content,” a Spotify spokesperson said.
The spokesperson noted that Spotify already pays roughly 70% of every dollar it generates from music to rightsholders including record labels and publishers.
“The Uruguayan government has issued much-needed clarification of the recent music copyright law changes, specifically that rightsholders are responsible for ensuring artists are fairly paid, rather than requiring Spotify to pay multiple times for the same content.”
Spotify Spokesperson
“We are pleased that this clarification will allow Spotify to remain available in Uruguay so that we can continue giving artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it. We thank President [Luis] Lacalle Pou and his team for recognizing the value Spotify provides to local artists, songwriters and fans,” the company spokesperson said.
In November, Spotify threatened to pull out of Uruguay due to proposed copyright law amendments. Spotify worried they’d be forced to “pay twice” for the same music under the new rules.
“Without clarity on the changes to music copyright laws included in the 2023 Rendición de Cuentas law – confirming that any additional costs are the responsibility of rights holders – Spotify will unfortunately begin to phase out its service in Uruguay effective January 1, 2024, and fully cease service by February, to the detriment of artists and fans,” a Spotify spokesperson said at the time.
The Uruguayan Society of Performers (SUDEI) advocated for these reforms earlier in the year, proposing changes to the nation’s music copyright regulations. Uruguay’s Parliament voted on a budget bill in October that included the proposed changes, specifically Articles 284 and 285 in the Rendición de Cuentas law.
Spotify contested the changes, arguing that the introduction of what is termed “equitable remuneration” through the amendments would compel the streaming service to pay twice for the same music.
Spotify had earlier emphasized the positive impact of streaming on the music industry in Uruguay, citing a growth of 20% in 2022 alone.
In 2022, Uruguay ranked as the world’s 53rd largest recorded-music market, with revenues reaching USD $13.2 million, up 20.2% YoY. Music streaming accounted for a substantial 64.4% of these revenues, Music Ally reported in October, citing data from the IFPI.Music Business Worldwide
