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.
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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Revenue does not equal profit (Score:2, Insightful)
Per the article, they paid 75% of that revenue to "the union" that qualifies as representing the artists.That's $9 billion gone. The rest probably has things taken out of it, like equipment and payroll.
They probably only managed $2.97 billion in actual profit.
Re:Annual revenue 2022 : 12 billion USD (Score:5, Informative)
You can always tell when someone knows nothing about business because they talk about revenue instead of profit.
Yes, Spotify had revenue of $12B. But that isn't the money they have available to spend.
The money they have to spend is the profit: What is left over after paying expenses.
Spotify's profit last year was $-0.8B. They are losing money
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Spotify's profit last year was $-0.8B. They are losing money
But they make it up on volume!
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I wouldn't be surprised if that is creative accounting.
Spotify is a public company. They have no incentive to hide income.
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Tell that to TFG. Or haven't you paid any attention to the civil trial for fraud in NYC?
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Oh no, losing $800 million in a year? That's bad. Maybe Spotify is in danger of going bankrupt?
"Anyway," said 99% of artists on Spotify...
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> "Anyway," said 99% of artists on Spotify...
Anyway, what?
People seem to be demanding imaginary money.
Now, granted Spotify recently dropped retarded podcasts like Obamas and Royals who were getting paid orders of magnitude more than they were worth.
But for some reason AG1 has paid Spotify seven thousand times to tell me to buy overpriced vegetables so that cash must be going somewhere.
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"Anyway," said 99% of artists on Spotify...
A typical popular artist's revenue ranges between 15-50% from streaming services, and Spotify is by far the largest. You wouldn't say "anyway" if someone offered you a paycut, why would you think an artist would?
Re:Annual revenue 2022 : 12 billion USD (Score:4, Insightful)
If the artists aren't being paid "fairly", they need to take it up with their record label.
This would be like auto designers saying they're entitled to some of Uber's money because they created the cars Uber is using. Sorry, it doesn't work like that.
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My guitarist friend Chris [youtube.com] isn't currently signed to a label, so who would you propose he take it up with?
(He has pointed out that Spotify's latest/forthcoming policies involve not paying independent artists anything at all and suggested that folks stream his songs somewhere, anywhere, else.)
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Spotify's latest/forthcoming policies involve not paying independent artists anything at all
That's misleading. What Spotify has announced is that any independent artist with less than a thousand streams, resulting in about $3 in royalties, will not be paid because the cost of processing the payment is more than the payment.
If you're earning less than $3 per year from your music, maybe it's time to try something different, perhaps working at McDonalds.
suggested that folks stream his songs somewhere, anywhere, else.
Where? Who's offering artists a better deal than Spotify?
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Yet another shit analogy. It's more like Uber taking the design of the car and mass producing millions of them without paying the auto designer one cent.
Sorry, it doesn't work like that.
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I totally agree. Why should people who create something be entitled to fair compensation from people who use their power and influence to take it for themselves for a pittance?
Kiss that corporate boot...and get some tongue on it!
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You must be new to the music industry.
Few artists get money from what they produce, most of them aren't making enough from the music to make ends meet but have other jobs as well.
The record labels are taking a lot of the money, Spotify is providing marginal payback for the music played (and who knows how many times a song is really is played through Spotify).
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This applies to independent artists. Spotify doesn't want to pay them if the cost of processing the payment is a significant proportion of the payout.
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If the artists aren't being paid "fairly", they need to take it up with their record label.
And the record labels will respond with "Hahahahahahahahahahahahahaha, and what are you going to do about it? Go indie? We'll just replace you with the dozens of other wide eyed hopefuls who'll give us a gobby between photoshoots who lined up right behind you when you were sucking us off. We own the industry, we own you. It's not like you've any actual talent, there hasn't been a need for that since Autotune."
If anything, the governments of the world need to be controlling such an abusive industry instea
How? (Score:1)
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?
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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.
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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.
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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
Re: How? (Score:1)
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)
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"a few" meaning "a free"? They can just geoblock the country on the cutoff date.
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The same way any Internet-based company blocks users from a specific country. They'll either base it on IP or account info.
Re: How? (Score:1)
Hrm neither works especially well, but I suppose that'd free them from legal obligations?
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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.
No! Not "fair and equitable remuneration"! (Score:1)
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)
U-R-Gay (Score:2)
Obligatory Simpsons quote
https://www.youtube.com/watch?... [youtube.com]
Spotify needs to pay the studio and the artist? (Score:2)
HAHAHAHA (Score:2)
HA - HA
Pay up, gravy train ride is over Spoppyfy
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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.