Spotify announced this Friday through an email to its Uruguayan customers that it will begin to gradually withdraw its service from the South American country from January 1 and that it will completely cease its services in February. In the message, he pointed out that the government approved in the Accountability Law "drastic changes in the way music works in the country."
"Spotify already pays close to 70% of every dollar it generates from music to the labels and publishers who represent and pay artists and songwriters, and has contributed more than $40 billion to date. The changes with this new law could force Spotify to pay twice for the same songs," the text states.
He adds, "Unless the government clarifies that the record labels and publishers, to whom we pay that 70%, must take responsibility for these costs, our business of connecting artists and fans will be unsustainable."
The platform explains that they want to "continue to provide artists with the opportunity to connect with listeners, and fans the opportunity to enjoy and be inspired by their music." But, nevertheless, "at this time, Spotify has no choice but to stop being available in Uruguay."
What the retreat will look like
Spotify is pulling out of Uruguay. Photo: AFP
Spotify announced that in December it will send the last invoices to those who have the Premium service and that in January users will have a free account until the suspension of the service, which will be on February 1.
He also remarked that after December 28 it will not be possible to start a new subscription.
"We understand that this news may be disappointing and we sincerely appreciate your understanding at this difficult time. Thank you for being part of the Spotify community. We look forward to serving you again in the future," the statement concluded.
On October 2, the audio platform that serves more than 574 million users warned that it could stop working in Uruguay.
Ignacio Martínez, president of Uruguay's Copyright Council, told EFE that the articles of the Accountability seek to fulfill "an old aspiration of many people in the culture" of the country to remunerate "fairly" for the dissemination of their work those artists "who were not protected" by the current law.
"(The platforms) will have to see how they make an even distribution that includes artists, performers, performers who deserve it, need it. (This) is paid for a lot in the world, especially in Europe, and Uruguay should be, like some other countries in the Americas, at the height of these advances," he said.
Lacalle Pou is confident that he will unblock himself
Controversy over Spotify in Uruguay. AP Photo
We're in talks, we're going to get through it, I hope so. We are going to reach an agreement," the Uruguayan president told reporters during a visit to the department (province) of Cerro Largo.
He added that the platform "is very important" for everyone and said that he also received the email that Spotify sent this Friday to its users.
"You have to try to be balanced, we understand that it's a very important platform for everyone. In fact, I received the notification this morning that came to many. You also have to somehow take care of the interpreters and also the authors," he said.
Spotify is a Swedish media services company founded in 2006 by Daniel Ek and Martin Lorentzon, which offers music and podcasts in streaming. It was released on October 7, 2008, after negotiating with record companies to license the songs and currently has 527 million active users, of which 210 million are paying users, according to its Q2023 <> financial report