Loudr creates products and services that help content creators and music services secure mechanical licenses and pay royalties to music publishers.
As proper licensing and royalty payments have been an issue for Spotify, this seems like a welcome move. Especially as they’ve had their fair share of copyright infringement lawsuits against them, with the most recent by Wixen in January this year.
Loudr’s technology automatically processes publishing metadata, and matches sound recordings to compositions. This ensures that the right people are getting paid for their hard work. With so many music sales coming from streaming services, it’s an essential step forward in the music industry.
Music rights are the subject of a new legislation called the Music Modernization Act, part of which involves the development of a new system to compensate songwriters in the age of online services.
“What Loudr has built is more than just a smart and easy way for artists to obtain mechanical licenses; it’s true music industry innovation,” said Adam Parness, Global Head of Publishing at Spotify. “The Loudr team perfectly complements Spotify’s music publishing operation and, together, we believe we can continue to foster a more open, streamlined, and modern music publishing landscape.”
This news comes after Spotify made their New York Stock Market debut earlier this month. Their market value could grow significantly, so let’s hope the acquisition of Loudr cuts the mustard.