Spotify intends to cease to exist in Uruguay by February 2024
Spotify announced its withdrawal from Uruguay on the grounds that changes to copyright laws were not clear. The platform will begin to close its service in the country from January 1, 2024 and intends to cease to exist in Uruguay by February of the same year. Read the full statement:
Without clarity on the changes to music copyright laws included in the ‘Rendición de Cuentas de 2023’ Law – confirming that any additional costs are the responsibility of rights holders – Spotify will unfortunately begin to terminate its services in Uruguay from from January 1, 2024, and will completely close the service by February, to the detriment of artists and fans.
Spotify already pays almost 70% of every dollar generated from music to the record labels and publishers who own the music’s copyrights, and who represent and compensate artists and songwriters. Any additional payments would make our business unsustainable. We are proud to be the biggest revenue driver for them, having contributed more than $40 billion to date. And, due to streaming, the music industry in Uruguay grew 20% in 2022 alone.
We want to continue giving artists the opportunity to connect with Uruguayan listeners and fans the opportunity to enjoy and be inspired by their music. Changes that could force Spotify to pay twice for the same music would make our business of connecting artists and fans unsustainable, and, regrettably, leave us with no choice but to stop being available in Uruguay.
Source: Rollingstone
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
