The global music and podcast streaming service Spotify Friday warned its Uruguayan users that the platform would be leaving the South American country shortly citing drastic changes in the way music works locally and that no new accounts can be opened after Dec. 28, it was reported in Montevideo.
Through an email to its customers, the company said it will gradually withdraw its service from Jan. 1 and will completely cease its services in a month. The company argued that the newly passed Accountability Act introduced drastic changes in the way music works in the country.
Spotify already pays about 70% of every dollar it generates from music to record 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, Spotify explained.
Unless the government clarifies that the record labels and publishers, to whom we pay that 70%, must assume responsibility for these costs, our business of connecting artists and fans will be unsustainable, it went on.
At this time, Spotify has no choice but to cease to be available in Uruguay, it added. We understand that this news may be disappointing and we sincerely appreciate your understanding at this complicated time. Thank you for being part of the Spotify community. We look forward to serving you again in the future, the statement also noted.
This month, Spotify will send its last invoices to Premium customers. In January, service will be free of charge account until its suspension on Feb. 1. No new subscriptions will be allowed effective Dec. 28.
Despite the news, Uruguayan President Luis Lacalle Pou was confident that such a decision could be reversed. We are in talks, we are going to get ahead, I hope so. We are going to reach an agreement, he said. The head of state also said the platform was extremely important for everyone and admitted he was among the customers who received Spotify's email.
We have to try to be balanced, we understand that it is a very important platform for everyone. In fact, I received the notification today in the morning that reached many people. We must also somehow take care of the performers and also the authors, Lacalle said.