Spotify acquires Loudr for quicker royalty payments
The world of music licensure is complex. There are so many people to pay from the label to the artist to the people in-between and there’s also a need to pay for both intellectual rights and performance rights, too.
Music streaming platform Spotify has entangled itself with performers for not only complaints about its rates but about its ability to track and pay them properly. Well, the company has just announced that it has acquired Loudr, a business focused on cover artists and mechanical licensing. The company uses algorithmic methods for picking up playback of its protected content and ensure fair royalties for clients.
Spotify is currently fighting a $1.6 billion lawsuit from Wixen Music Publishing. Engadget reports that the company has faced three class action suits in the past year with one settlement made for $43.5 million. It had another agreement with the National Music Publishers Association to pay out $21 million. All of these costs are going to claims of undercounted royalties.
The Loudr staff will join Spotify’s New York office and maintain their current relationships with labels. Meanwhile, Spotify will hope to exploit its acquisition with better royalties tracking per play on its own platforms.