Spotify acquires company that arranges payouts for cover songs

Spotify has acquired the start-up Loudr. That company can identify cover songs and mediate between the creators and record companies that own the rights to the original.

Spotify probably wants to use the company’s technology and services for its own music streaming service. After the acquisition, Loudr’s employees will start working in Spotify’s New York office. According to the announcement, Loudr will continue to offer ‘some’ services to its existing partners and the company will also help Spotify in the negotiation between music makers and rights holders.

It is not known what amount Spotify will pay for the acquisition. Loudr was founded in 2013 and focuses on products and services that make it easy for music creators and music services to identify and track royalties due to publishers who own the rights to songs that are the subject of a cover.