Spotify has indicated that it will not provide fair compensation to artists. The music streaming service has faced criticism for its low artist pay and has announced plans to end its operations in Uruguay due to the country’s budget bill mandating fair remuneration for artists.
Artists will not receive fair payment from Spotify.
In October 2023, Uruguay voted on a budget bill that included two articles concerning media streaming. One article stated that performers should receive financial compensation for song reproductions, while another called for fair and equitable remuneration to be included in copyright law, as reported by The Guardian.
Spotify requested modifications and announced it would stop its services in Uruguay starting January 1, 2024. Additionally, the streaming platform reportedly pays nearly 70% of its revenue to record labels and publishers who represent and compensate artists and composers.
Spotify recently announced that they will stop paying royalties for songs that have less than 1000 streams in a year starting from the first half of 2024.
