DIMA Follow-Up Letter to Committee on Culture, Arts, and Communications, Chamber of Deputies (Chile)

LEER EN ESPAÑOL

July 22, 2025

Committee on Culture, Arts, and Communications
Chamber of Deputies
National Congress of Chile

RE: Comments from the Digital Media Association (DIMA) on the bill to amend Article 67 bis of Law No. 17.336

The Digital Media Association (DIMA) appreciates the opportunity to offer comments on the bill to amend Article 67 bis of Law No. 17.336, which seeks to adjust remuneration rights for performing artists and musicians when their performances are made publicly available (the “Tommy Rey Law”).

About DIMA:

DIMA represents the world’s leading music streaming companies, including Amazon, Apple Music, YouTube, and Spotify.

In Chile, the current legal framework already requires DIMA’s members to license multiple types of music rights, including those of record labels, publishers, and collecting societies. This model has proven very successful as it is generating record results: in 2023, Chile registered a 32.4% growth in music collections, ranking among the 30 most relevant music markets globally. By 2024, the Chilean music sector is estimated to have reached revenues of US$199.85 million, with streaming accounting for more than 85% of the total recorded music market.

Today, streaming services already allocate approximately 70% of their revenue to rights holders, including labels, publishers, and collecting societies, under existing licensing contracts.

DIMA’s Main Concerns:

1. Double Payment:

The bill introduces a new, non-waivable and non-transferable right to remuneration for performers when their performances are made available to the public, even if those rights have already been assigned and paid for through licensing contracts with rights holders, such as producers or record labels.

Under this approach, digital services would be forced to pay twice for the same stream: once under their existing licensing agreements, and again via a collective management organization (CMO).

Imposing an additional payment for the same use would directly threaten the economic sustainability of the streaming model, potentially raising costs for consumers, reducing available resources for investment in local catalogs and artist development, and limiting Chilean listeners’ access to music, as well as Chilean artists’ reach to new audiences.

2. Mandatory Collective Management:

The bill mandates that the new remuneration must be managed exclusively by a collective management organization, excluding other forms of administration such as direct management by the artist or private contractual arrangements.

Collective management organizations are not typically involved in the licensing process for performers’ rights in the online environment, as the responsibility for transferring payments from digital services to performers lies with the rights holders (record labels and distributors), who already receive payment from streaming services for all necessary copyrights related to the use of sound recordings.

The proposed compulsory intermediary model generates potential conflicts with existing agreements, restricts artists’ contractual autonomy, and undermines the freedom of association right recognized by the Chilean Constitution by compelling all artists to rely on a single organization to receive remuneration.

3. Potential Violation of International Trade Obligations:

The bill raises concerns regarding Chile’s commitments under the U.S.-Chile Free Trade Agreement, particularly Article 17.7, which requires full transferability of copyright and related rights and guarantees freedom of contract.

By imposing inalienable, collectively managed remuneration, the bill disregards the terms of valid domestic and international contracts and creates legal uncertainty that could negatively impact trade relations.

Conclusions:

• The bill creates double payment obligations for digital services already paying rights holders under existing contracts, effectively requiring platforms to pay twice for the same use.
• While various countries, including Uruguay, Peru, and Paraguay, have considered introducing similar models, they were ultimately withdrawn due to impracticality and the risk of market disruption.
• Additional costs and administrative burdens are likely to lead to increased subscription prices, reduced access to music for Chilean users, and hinder the reach of Chilean artists.
• The bill restricts the contractual freedom of artists, undermining the flexibility needed in today’s global digital music market.
• The bill contradicts Chile’s international treaty obligations under the U.S.–Chile FTA by creating a non-waivable, collectively managed remuneration right for performers.

DIMA appreciates the opportunity to contribute to this important legislative process and stands ready to engage constructively to help realize a strong, sustainable, and globally competitive music ecosystem in Chile.

Sincerely,
Graham Davies
President & CEO
DIMA