After several weeks of negotiations, carried out by the Secretary of the Presidency, Alvaro Delgadothe government could reach an agreement with Spotify and prevent the Swedish company from leaving the Uruguay as I had anticipated a few weeks ago.
The government’s decision was to modify some points of the regulations of the two new articles – approved in the Accountability – which caused the Swedish company to decide to leave the country. According to El País, meetings were held last week between government technicians and Spotify and they managed to reach an agreement on the modification of the regulations regarding what the Swedish company demanded.
The modifications could be announced very soon by the Secretary of the Presidency where the demands of Spotify where it claims to make a single payment to artists for the reproductions of their songs in the music application per streaming.
Spotify’s statement
The Swedish company confirmed earlier this month that it will leave Uruguay next year, gradually withdrawing it from January 1, 2024 and completely ending its services in the country in February and that the premium version It will be the first to be unavailable.
“We are contacting you to share important news about the service of Spotify in Uruguay. Unfortunately, Spotify will begin to gradually withdraw its service in Uruguay starting January 1, 2024, and service will completely cease in February“said the company, officially confirming what it had already announced on November 20 but had been put on hold in the midst of the government’s negotiations to find a solution.
The Swedish company insists that after the approval of the Accountability Law —particularly, modifications in copyright matters—, could end up having to pay twice for the same songs when it already pays almost 70% of every dollar it generates from music to the record labels and publishers that represent the artists and songwriters. “Our business of connecting artists and fans will be unsustainable,” he explained in the statement.
Service Spotify Premium He will be the first to disappear from the country. Those users who are subscribed will receive their last bill this month and, in turn, it will be the last in which they can take advantage of its benefits. “After this, you will go to a free account until the suspension of the service on February 1,” the company told its users.
“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 community Spotify. We hope to serve you again in the future,” the text concluded.
What are the articles that Spotify points out?
Spotify claimed from the first moment, before the Accountability Law was approved, about the modifications in two articles: the 284 and the 285.
The first is based on the fact that the social networks and the Internet like other formats by which, if a song is reproduced, the performer has the right to a economic remuneration.
On the other hand, the modification of article 285 proposes that “the agreements entered into by authors, composers, performers, directors and scriptwriters with respect to their power of public communication and making phonograms and audiovisual recordings available to the public” have the right to a fair and equitable remuneration.
Although this was approved by Parliament, until a few days ago the government continued seeking alternatives so that the Swedish company did not leave the country, taking advantage of the window until January 1 for the law to come into force.
“The law provides a framework, the regulatory decree could order the agreement and ensure that everyone is relatively satisfied,” considered the Senate of the PJorge Gandini National Art in this regard, raising the possibility that the president Luis Lacalle Pou will take action on the matter after his return from China. Something that, apparently, would not have happened.
Source: Ambito
