Shazam was made available for public use back in 2007. Since then, the application has been serving one purpose, i.e. to record the song that is playing and identify it for its users. This allows individuals to be aware of the song and download or stream it if they feel like. When the song-detecting technology first came into an establishment, it was received well by the audience. It is still received well till now. However, it appears that the owners of Shazam are willing to part ways with the app. Numerous reports have begun claiming that Shazam is being acquired by technology giant Apple for a whopping sum of roughly $400 million.
As noted by LA Times, the Britain-based firm initially began in 2002 as a phone service facility. Mobile users were required to dial 2580 in their handsets. Following which, they were required to hold them closer to the given source of music. The Shazam song-detecting technology would then respond with a text message. The message would contain the name of the artist as well as the title of the song. A couple of years later, Shazam made the decision to roll out the feature in the form of an app. Shazam primarily received a majority of its funding through apps. With time, Shazam began making monetary profits via music referrals. It took Shazam over fifteen years to become one of the most-downloaded apps on both, Apple’s App Store and Google Play Store. According to expert analysts quoted by LA Times, it is the company’s longevity in the market that puts the product in such a unique position. Developers at Shazam were smart enough to implement changes as and when technology began to advance. Although, the technology upon which Shazam is based, is not limited to the company anymore. It has become replaceable. This puts Shazam in a vulnerable position, as the possibility of their success fizzling out among the mass still remains. This is believed to be the main reason for Shazam’s decision to give into Apple’s offer of $400 million.
Head of Technology Research at GBH Insights, Mr. Daniel Ives thinks that Shazam has customer base and data that holds Apple’s interest. “The only reason they’ve been successful is they’ve done it for years, and they’ve got a strong install base of customers. For Apple, it’s about buying that customer base and data,” he was quoted by LA Times. Shazam’s database consists of all sorts of information, including what music customers are searching for, what they are buying and their music preferences over the span of the last couple of years is valuable for Apple.
Apple and Shazam confirmed the acquisition on Monday, 11th December 2017. “We can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users,” says a Shazam spokesman in a statement. Meanwhile, an Apple spokeswoman was reported as saying, “We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
It remains unclear whether Shazam will be available as a standalone app, or will be integrated into Apple Music as an additional service. What will happen to the existing partnerships that Shazam already has with Snap Inc. and Spotify? This is a question that only Apple can answer. As far as the Cupertino giant is concerned, they haven’t revealed any future plans regarding this matter. Apple has always considered music as being a major part of their business. Therefore, it does not come across as a surprise that they have invested heavily into this segment.