The streaming music platform issued a harsh warning regarding a law that is being debated by Parliament.
the company of streaming music swedish, Spotify, which is based on Uruguay, threatened to leave the country if two articles on copyright that are being debated in the Accountability who entered the Senate today.
Spotify sent a letter to the Minister of Education and Culture on July 19, Pablo Da Silveirarequesting that the modifications that are to be made to articles 284 and 285 of Law No. 9,739 that regulates the Copyright in Uruguay. “If the proposed reform were to become law in its current form, Spotify’s business in Uruguay could become unfeasibleto the detriment of Uruguayan music and its fans,” the letter explained, reported El País.
From the company they establish that the article modifications would imply an additional payment to what Spotify already provides, something that “would severely affect the ability to invest and provide services at reasonable prices for consumers.” On the other hand, they remarked that, despite the great popularity of the platform, its gross margins are lower than traditional record stores or radio stations.
Spotify’s low royalties
In this sense, they assured that “with that historically low margin” they must cover the business operating costsincluding promoting local and global repertoire, data portals and other tools for artists and their teams to develop new audiences on and off our platform, developing personalized recommendations for fans, and investing in your music team first level.
On the other hand, from Spotify they highlighted the importance of their company in terms of the music growth In uruguay. “We have played a fundamental role in reversing the decline of the music industry, which was plagued by piracy. Thanks to streaming, the music industry in Uruguay grew by 20% last year alone, to the benefit of artists, composers and those who support them,” the letter explained.
What do the new articles propose?
The modification of article 284 is based on the addition of the social networks and the internet as other of the formats by which, if a song is reproduced, the interpreter has the right to a economic compensation.
On the other hand, the modification of article 285 proposes that “the agreements that authors, composers, performers, directors and screenwriters regarding their power of public communication and making phonograms and audiovisual recordings available to the public” they have the right to fair and equitable remuneration.
Source: Ambito
