For years, there has been a conflict between Spotify and artists over pay. In Uruguay, a new bill aims to fix the problem, but Spotify threatens to leave if it isn’t changed. This new law in Uruguay would require Spotify and other music streaming services to pay artists and songwriters more money each time their songs are played.
Spotify said this new law would force them to pay artists twice for the same songs. They claim they already pay almost 70% of the money they make from music to record labels, publishers, artists and songwriters. But the new law says streaming services need to give “fair and reasonable payment” directly to performers like singers and musicians.
Spotify warned that these extra payments would make their business impossible. If the law stays as is, Spotify plans to slowly stop its service in Uruguay starting January 1, 2024. They also said they will stop doing business in Uruguay’s music market after that.
It’s unclear if the Uruguay government will change the law to make Spotify happy. Spotify wants the law to say if streaming services or record labels need to pay the extra money to artists. Right now, Uruguay’s leaders did not change the law for Spotify. We’ll have to wait and see if they negotiate or if Spotify pulls out of the country for good.
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