Spotify's acquisition last week of the music licensing start-up Loudr helps the streaming service to better manage its costs so that it can focus on attracting new subscribers for its premium service, said a digital media investment banker who helped Loudr close the deal.
Loudr's services are intended to make it easier for content creators and digital music services to identify, track, and pay royalties to music publishers more efficiently. Royalties are, of course, part of Spotify's recurring costs.
"It makes sense for Spotify, which is the largest music streaming service in terms of paid users, to take control of this important piece," said Sun Jen Yung, a partner and the head of digital media at Nfluence Partners.
Loudr makes the complex process of paying royalties easier through automation, she said Wednesday in an interview on Cheddar.
This week, Spotify announced it will update its mobile app soon in an effort to make it easier to use.
"To the extent that they can attract more users, that can hopefully help them upgrade to a premium service," said Yung.
For full interview, [click here](https://cheddar.com/videos/inside-spotifys-acquisition-of-loudr).
With the election behind us, many are wondering what the next four years look like for the US economy. Drew Pettit, from Citi Group joins Cheddar to discuss.
Jeff Ostrowski, Mortgage & Housing Analyst at Bankrate, discusses mortgage rates in America and how the housing market will change under a second Trump term.
The NAACP has entered the VC space with a new fund that will invest in startups and fund managers that are focused on closing gaps facing communities of color.
Can a layoff lead to your next big thing? Issie Lapowsky, contributor for Inc. Magazine and Alphonzo Terrell, co-founder and CEO of Spill join us to discuss.
Meet Scorpion, the latest, Nvidia-powered service robot from Richtech Robotics which crafts personalized cocktails and wine selections based on your mood
Gina Heeb, finance reporter at The Wall Street Journal, joins us to discuss the current state of the real estate market and when things may turn around. Watch!
