Spotify confirmed that it is leaving Uruguay: “our business of connecting artists and fans will be unsustainable”

by time news

2023-12-01 13:30:06

Spotify leaves Uruguay and cannot be used from 2024

In a surprising press release, Spotify announced today his decision to gradually withdraw your music services in Uruguay, beginning on January 1, 2024, culminating in the complete suspension of service in February of the same year.

The drastic measure taken by the world’s largest music streaming platform is attributed to the recent approval of the Accountability Law by the Uruguayan government. The legislation, which aims to reform the music industry in the country, has generated significant controversy and concerns for the Swedish company.

Spotify says it currently allocates approximately 70% of every dollar generated by music to record labels and publishers, and now faces a daunting prospect with the changes introduced by the new law.

According to the statement, there is a risk that the app will be forced to make duplicate payments for the same songs, which could result in an unsustainable financial burden for the business..

The company, which has contributed more than $40 billion to the music sector to date, argues that the lack of clarity from the government regarding the responsibility of record companies and publishers to assume these additional costs puts at risk. jeopardize its ability to operate profitably.

How Spotify’s departure from Uruguay affects users in the country

The news will directly impact Uruguayan Spotify users, as follows:

Free Users: Existing Spotify free users will lose access to their account on February 1st.

New Spotify Premium subscriptions: After December 28, it will not be possible to start a new subscription.

“After February 1, 2024, Spotify will not be available in Uruguay. “You will not be able to access Spotify to listen to music through the application or log into your account through the website,” explains the music streaming service.

“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 Spotify community. We hope to serve you again in the future,” Spotify closed in its statement.

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