According to nme.com, the streaming music platform Spotify has confirmed they will no longer provide their services in Uruguay following the country’s copyright law that would require “equitable remuneration” for the artists. Spotify is planning  to end their service in the Latin American country on Monday, November 20 said a Spotify spokesperson. The spokesperson also confirmed that the music streaming platform will start to “phase out” their service in Uruguay on January 1, 2024 and cease operations fully by February. In the following statement the spokesperson for Spotify further explained why the platform is leaving the Latin American Country: “Changes that could force Spotify to pay twice for the same music would make out business of connecting artists and fans unsustainable, and regrettably leaves us no choice but to stop being available in Uruguay.”

According to Mixmag, “Rendición de Cuentas” is the name of a bill that was approved by the country’s parliament, which was introduced earlier this year by the Uruguayan Society of Performers (SUDEI) and proposed to amend both 284 & 285 of the Uruguay copyright law.The amendment will also introduce a requirement for “fair and equitable remuneration” for artists in regards to their recorded material.

Spotify shared a statement explaining their decision to end service in Uruguay: “Without clarity on the changes to music copyright laws included in the 2023 Rendición de Cuentas law – confirming that any additional costs are the responsibility of rights holders – Spotify will unfortunately begin to phase out its service in Uruguay effective January 1, 2024, and fully cease service by February.”

The statement continues with: “Spotify already pays nearly 70% of every dollar it generates from music to the record labels and publishers that own the rights for music, and represent and pay artists and songwriters. Any additional payments would make our business untenable. We are proud to be their largest revenue driver, having contributed more than $40B to date. And because of streaming, the music industry in Uruguay has grown 20% in 2022 alone.”

In other news, Spotify confirmed the streaming thresholds for their new royalty model. According to a Billboard report, a track would have to meet a minimum annual threshold of 1,000 streams before it would start to generate royalties.

Spotify will be introducing three new policies in 2024. First, all tracks will have to reach a minimum streaming threshold of 1,000 streams within 12 months to be eligible to receive royalties. Second, labels and distributors will be charged a penalty for delivering content responsible for allegedly fraudulent streams. And third, functional tracks, like white noise or environmental sounds, will require a longer minimum play time than music tracks to earn royalties, extending the minimum threshold to two minutes.