"CrowdAlbum aggregates photos and videos from artists' performances" and "helps them (artists) to identify and connect with their most passionate fans," Spotify said in a statement.
CrowdAlbum was founded by Tracy Chan, a former Google and YouTube executive, in 2013.
It is the third acquisition of the year for Spotify, which snapped up Ireland's Soundwave, a music discovery application, and Cord Project, a US-based voice messaging service for phones, tablets and smartwatches, in January.
Financial details of the CrowdAlbum acquisition were not disclosed.
Spotify, which claims more than 30 million paying subscribers in 59 countries, raised a billion dollars in financing through convertible bonds in March, according to The Wall Street Journal.
Earlier this month, Spotify said it would turn its back on Sweden in future expansions if the country failed to address high taxes, a housing shortage and an outdated school system.
Daniel Ek and Martin Lorentzon, who founded Spotify in 2008, published an open letter on the website Medium detailing their gripes against their native country.
"Lawmakers have to realise that we compete in a global talent market and that the price to pay for inferior conditions is high. We are now mulling whether to grow in Stockholm or New York," they wrote.
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