Spotify tacitly admits it will go out of business if it gives artists fair pay

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• Spotify plans to pull its service out of Uruguay after the passing of a bill that would require “fair and equitable remuneration” for artists.
• The streaming platform states that “additional payments would make our business untenable.”
• If the bill isn’t changed, Spotify says it will begin phasing out the service on January 1, 2024.

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Pay has been a sticking point between Spotify and artists for years now. A new bill in Uruguay aims to fix the problem, but Spotify is threatening to leave the country if the bill isn’t changed.

According to The Guardian, Uruguay’s government voted on a budget bill in October that included two articles related to streaming media. Article 284 says that social media and the internet are to be added “as formats for which, if a song is reproduced, the performer is entitled to financial remuneration.” While article 285 states that the “right to a fair and equitable remuneration” will be added to copyright law. By remuneration, these articles are referring to authors, composers, performers, directors, and screenwriters.

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