Apple purchases music identifying app Shazam for $400 million

Angelica Greene
December 14, 2017

That's well below Shazam's once reported $1 billion post-valuation, the company has recently been on the decline due to the inability to find a viable business model and underperforming by only pulling in $56 million in 2016.

If you haven't already integrated Apple Music, Spotify or another music streaming service into your everyday life, you might be forced to in the next couple of years.

In contrast, "Shazaming" a song is now second-nature in music discovery, and the namesake audio recognition app has become the top utility for music identification, discovery and monitoring - for consumers and content creators alike.

Scan your eyes over Apple's just-published list of the year's most popular iPhone apps, and there's one notable omission: Shazam.

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Hence, when Apple confirmed on Monday (Dec. 11) that it acquired Shazam - after a competitive bidding process that reportedly included Snap and Spotify - the dent it created in the music industry was equal parts financial and cultural. In the mobile space the company is mainly fighting against Google, whose AI and machine learning prowess is arguably far above Apple's. Bloomberg is reporting that a new paid music service, tentatively titled Remix could be ready to launch as soon as March and feature Spotify-style on-demand music streaming alongside obvious tie-ins to its current music video dominance. At the very least it can be expected that any continuing version of Shazam will now prioritise Apple services when making referrals.

DMN's Paul Resnikoff provided a few more details about the plan, which will allegedly take hold of Apple's iTunes users shortly after the Christmas season of 2018 ends. Apple is lagging behind its big rivals when it comes to smart speakers and digital assistants.

In addition, Apple's acquisition of Shazam likely will not interfere with the corporation's other data partnerships. So why did Apple make its move right now? We are interested to see how Shazam and their use of augmented reality technology will help improve Apple Music in the future.

Other reports by GizPress

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