Apple adds another feather to its hat. Recently, it has confirmed that it so taking over leading song recognition app Shazam to secure its position in the intensifying battle of streaming services.
Apple, whose streaming services have witnessed a rapid growth, have only half the paid subscribers of Spotify. So, it has justified this acquisition by describing Shazam as one of the most consistent and popular items in the App store.
Even if the financial terms are still a secret, prominent technology sites like Recode and TechCrunch, terming them as unnamed sources, have rumored the deal to be around $400 million i.e. roughly ₹2,580 crores.
With the positive nod by the market, Apple share prices have witnessed a price of 2.0 percent, completely outpacing the 0.2 percent rise on the Dow Jones Industrial Average.
To this, Apple regarded in a statement that, “Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users”.
Also, London-based Shazam, in regards to this acquisition added that, “We can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users”.
To look back, Shazam, the app which was founded in 1999 at the very onset of online music, has solved a long ushering problem of the listeners, i.e. the correct identification of elusive songs. So, users, only with a single click on the app, would be able to identify all the unknown tracks being played on the radio, at parties or at the background music.
But even after this, Shazam has faced hard times to find a way to make money off its technology, even as it said that it had reached one billion downloads on smartphones last year. For instance, this technology is no longer quite as novel, with Shazam facing rivals such as SoundHound and with smartphones capable of ever more advanced recognition functions.
Apple regarded Shazam that it would be a “natural fit” with its Apple Music streaming service and also would help users discover new songs. Right now, Apple Music has 27 million users and competes against Spotify Ltd, which has 60 million users. Apple regarded that the Shazam’s team would be joining the Cupertino company.
In his statement, Apple spokesman Tom Neumayr regarded that Shazam “is used by hundreds of millions of people around the world, across multiple platforms. … We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Even if Apple did not elaborate on its plans, but the company would not be able to make any major changes to Shazam until it secures regulatory approval.
Shazam is also available on Android-based devices, but Apple did not confirm the fact that it would keep the Android version available or not.