Last week Tech Crunch reported that Apple might be buying Shazam. Apple Music Streaming services have attracted a lot of customers an estimate of nearly 27 million subscribers since the launch of the app in 2015. But to up the game and compete with its rival Spotify, Apple has to make something remarkable in very short time and it has done so by acquiring Shazam. Spotify longed to break a deal with Shazam, however, Apple had other plans and acquired Shazam at an evaluation of whopping $400 Million.
Shazam is a very popular audio clip recognition app. It can recognize a TV Ad, Song, or any audio clip, with just a few bars of music in play. The app pulls out the data related to the audio clip in seconds. Shazam was one of the first companies to make an iOS app in 2002 when the iPhone saw the light of the day. Shazam existed even before 2002 but under the name 2580, after the famous dial in code to access mobile app services in UK.
Apple has been using Shazam’s services in making Siri a better personal assistant. With Apple music streaming services in line for major updates, it is very important to awe its users with something like Shazam’s audio clip recognition software. If all goes well, very soon we may see Shazam’s integration in Apple’s OS.
In response to the media’s assumptions, when the deal was confirmed on Monday, this is what Apple’s CEO Tim Cook stated.
“We are thrilled that Shazam and its talented team will be joining Apple. Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms. Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users. We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
He mentioned that Shazam is a natural fit to Apple Music platform and in a way it is true. The trick question is, how did Apple manage to bargain the deal that Shazam was ready to settle for $400 million dollars, even though its first round of evaluation estimated a worth of $1 Billion in 2015?
Shazam’s platform can do more than just identifying songs. With “Visual Shazam” you can place virtual objects in the real world. Last year, it has turned its attention towards advertisements and generated a revenue of $ 54.3 millions. Earlier this year, Shazam CEO Rich Riley mentioned to Business Insider that, Shazam might also make sense as an acquisition target for a big company looking for a foothold in music or advertising.
The big question is what happens to Shazam after the acquisition? What happens to the existing users? Will Shazam close its operations and totally integrate its platform with Apple Music or will it continue to operate individually while supporting Apple in preparing revolutionary music platform? These questions still remain.
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