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Music

Spotify To Phase Out Service In Uruguay Following New Copyright Bill (theguardian.com) 36

Laura Snapes reports via The Guardian: Spotify is to phase out its service in Uruguay after the passing of a new music copyright bill requiring "fair and equitable remuneration" for authors, composers, performers, directors and screenwriters. In October, the country's parliament voted on a budget bill that included two new articles: per article 284, social networks and the internet are to be added "as formats for which, if a song is reproduced, the performer is entitled to financial remuneration" -- namely if a link to a song is shared online. Article 285 will put into copyright law the "right to a fair and equitable remuneration" for all "agreements entered into by authors, composers, performers, directors and screenwriters with respect to their faculty of public communication and making available to the public of phonograms and audiovisual recordings."

In response, Spotify said in a statement on November 20 that without changes to the 2023 Rendicion de Cuentas law, the streaming platform "will, unfortunately, begin to phase out its service in Uruguay effective January 1, 2024" and cease trading in the market in February 2024. The Swedish company seeks confirmation on whether additional costs to be paid to musicians are the responsibility of rights holders or the streaming platforms, arguing that the latter means that it would be required "to pay twice for the same music," Music Business Worldwide reports. The statement continued: "Spotify already pays nearly 70% of every dollar it generates from music to the record labels and publishers that own the rights for music, and represent and pay artists and songwriters. Any additional payments would make our business untenable." The platform claimed that it had contributed to a 20% growth in Uruguay's music industry in 2022. That year, the South American nation was the 53rd largest market for music.

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Spotify To Phase Out Service In Uruguay Following New Copyright Bill

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  • How will Spotify phase out its service in Uraguay? Does Uraguay have a sovereignty firewall like the PRC that makes it unviable to run a service like this from outside the country?

    • by tepples ( 727027 )

      Presumably it'd work the same way as a live service video game reaching end of service: not offering customers with a billing address in the country an option to renew their service for another month, and providing a prorated refund for annual commitments.

      • providing a prorated refund for annual commitments

        Bwahahahaha! A refund? They'll be given a six-month free trial of something else they have no use for, or just an "it sucks to be you" depending on Uruguay law, but one thing they'll never get is any of their money back.

        • I don't think you have enough information to make that claim. The questions you need answered:

          - How much of their Uruguay-an(?) user base pays a year at a time?
          - What are the laws in Uruguay pertaining to this situation, if any?
          - What is the cost to reputation vs. the cost of the refunds? Kind of a "good will" on the balance sheet assessment...

          My guess is they'd just refund where they can. Some folks will probably get shafted because they've either got no paper trail on their yearly sub or their payment met

      • Hrm. I suppose that'd be somewhat effective. However, don't they have a few service, or do you need a billing address for that too?

        (no, I don't use Spotify)

    • The same way any Internet-based company blocks users from a specific country. They'll either base it on IP or account info.

      • Hrm neither works especially well, but I suppose that'd free them from legal obligations?

        • Correct. They really don't care if someone lies about their location when filling out the registration; that way they can say they are obeying the regulations AND still get paid. That way the fraud is perpetrated by the user, not Spotify.

  • Anything but that!
    Well, guess they have no other option but to close in Uruguay.

    (Or, ya know, Spotify could be doing the equivalent of picking the runt in the prison yard and kicking the shit out of him just to demonstrate what could happens should others try likewise)

  • Obligatory Simpsons quote
    https://www.youtube.com/watch?... [youtube.com]

  • Doesn't the artist get their money from the studio?
  • HA - HA

    Pay up, gravy train ride is over Spoppyfy

    • What gravy train? Spotify went public in 2018. In 2021 they "almost" broke even. They've lost a couple billion dollars.

      If the gravy train is leaving the station, they never were on board.

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