Spotify will end service in Uruguay due to bill requiring fair pay for artists
Spotify will end service in Uruguay due to bill requiring fair pay for artists
That’s definitely the case, and that’s not the only country with laws that protect artists this way, for example Brazil right next to it also have it’s own set of laws, had then even before Spotify was a thing, but Spotify is happily in Brazil since 2014.
The Uruguayan law is just not well though, and that’s what happens when you put incompetent people in charge of making laws for things they don’t have the slightest clue of how they work. They kill an entire industry.
Is it Spotify that arrange the cut for artists or the label though?
I don’t know but I’d think it’s the labels as it’s too much for Spotify to negotiate per-artist?
When food companies use slave labour or cut down old growth forest for intensive farms do we get mad at Walmart/Tesco/Carrefour for having a normal margin on what they buy from the food companies (which may or may not leave enough for the products to be sourced sustainably, but that’s a separate argument as the food companies would likely take a higher margin over keeping the same one and making their food more sustainable if paid more) or do we blame the food companies/their suppliers?
Spotify claims that “because of streaming, the music industry in Uruguay has grown 20% in 2022 alone.”
Yeah, sure, you must be totally right.
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Found an earlier article by El Observador before the legislation passed. Under Uruguay’s old laws Spotify, YouTube, an other streaming platforms paid little to nothing in artist royalties. With the new legislation artists will now see fair compensation.
The Guardian does a better job explaining Spotify’s problem: do the royalties come from rights holders (I am assuming they’re referring to record labels) or the streaming services? The later case they believe will cause them to pay double what they’re paying for streaming rights.
The issue just needs to back to Uruguay’s government to sort out who pays the artist royalties, or if both labels and streaming share a proportionate responsibility.
Thanks.
Putting the El Observador article through translate
When a song in Uruguay is played on radio, television or at a party, the rights are collected by the General Association of Authors of Uruguay (Agadu) which retains the 60% of what is paid. The remaining 40% is divided equally between performers and record labels.
Spotify says that it already pays for the rights. This understanding would mean that the players in Uruguay should work out how that is to be split.
Spotify fears that the new law turns what they pay currently, simply into one share of the total, implying an extreme increase of the cost.
It’s a copyright management firm. Some countries have government-sponsored monopolists for that. This looks like one of those.
The author of a song and the performers may not be the same (most obvious with covers). Most of the money collected by Agadu is presumably paid out to the authors/songwriters (or whoever they sold the rights to?), minus management fees. Whether the pay-out scheme is fair, may be another point of contention. Think about a live band playing covers by various authors in some bar: How is it tracked what they play, and how much should be given to each of the many different authors? I don’t know how that works in Uruguay, but my country has a system of that sort.
I see that not everyone’s a cynic, yet.
What does that mean, though?
Oh well, I suppose everyone will lay down and die with no access to music. What will artists do without that all important half a peso for 5000 streams?
Cash money says there’s already a native competitor just waiting to get that money. If not there will be soon. Maybe people will just buy records again, shit. Uruguay isn’t doing half bad, financially, maybe they’ll bring tapes back.
It has been quite something to see American tech companies rolling out across the world trying to pull that same old “sign the EULA or lose everything” bullshit and it’s just not working for them. Too bad we can’t kick them in the dick like other nations can.
Cash money says there’s already a native competitor just waiting to get that money
There isn’t and probably won’t be. At least not one with a library even half a size to that of spotify. People will probably flock to some competition like apple music or youtube music (neither of those services, as they are not very popular, seem to have said anything about this copyright law amendment). Also a senator already pointed out that if you have a valid argentinian credit card (there’s one very easy to get here), you can just register as an argentinian and pay less than a dollar instead of the seven dollars it costs here as a turnaround.