Spotify is officially leaving Uruguay “due to uncertainties regarding the local implementation of the streaming law in the country.” A similar project in Poland is proposed by the government.
“Without clarity on changes to music copyright rules in the 2023 Rendición de Cuentas Law – which confirms that any additional costs will be the responsibility of rights holders – Spotify will unfortunately begin phasing out its service in January 1, 2024 Uruguay. will completely suspend services by February, to the detriment of artists and fans,” the company’s announcement reads.
Spotify said it is already paying almost 70%. of every dollar generated from music goes to the record labels and publishers who own the rights to the music and represent and pay the artists and songwriters.
“Any additional payment would make our business unsustainable. We are proud to be their largest source of revenue, which has totaled more than $40 billion to date. And thanks to streaming, Uruguay’s music industry will grow by 20% in 2022 alone,” we read. further.
Changes that could force Spotify to pay twice for the same music would make connecting artists and fans untenable and “unfortunately leave us no choice but to cease operations in Uruguay,” the report said.
Spotify leaves Uruguay. Will Poland be next?
Spotify’s director of public affairs, Dustee Jenkins, in a commentary for “Rzeczpospolita” in March this year. stated that if the Polish government’s proposed amendment to streaming were to become law, the platform’s operations in Poland could become unviable, just like in Uruguay.
Spotify is a Swedish streaming service that gives users access to music and podcasts under a freemium license. The company provides digital, copyrighted music and podcasts, including more than 82 million songs, from record labels and media companies.
Spotify’s core features are available for free, but with ads and limited personalization options. Additional options such as offline listening and ad-free listening are offered through paid subscriptions.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
