Spotify acquires company that arranges payouts for cover numbers
Spotify has taken over the Loudr start-up. That company can identify cover numbers and mediate between the makers and record companies that have the rights of the original.
Spotify probably wants to use the technology and services of the company for its own music streaming service. After the takeover, Loudr employees will start working in the Spotify office in New York. According to the announcement Loudr continues to offer ‘a few’ services to its existing partners and the company will also help Spotify in the negotiations between music makers and copyright owners.
It is not known what amount Spotify pays for the takeover. Loudr was founded in 2013 and focuses on products and services that make it easy for music makers and music services to identify and keep track of which royalties have to be paid to publishers who have the rights to songs that are the subject of a cover.