Technology giant Apple has been making improvements to its software and hardware in 2017. They stunned the world with their iPhone X, and continue to revolutionise everyday technology, with products such as Apple Watch. But Apple isn’t stopping there; the company wants to step up its game in music and to do so, they are amid acquiring one of the most popular music services – Shazam, a popular application which enables people to identify any piece of music, from a random song, advert, etc. With the touch of a button, it listens to an audio clip and proceeds to show you the relevant piece of music.
Shazam started up as an SMS Code Service in 1999, with the name of 2580, which was the access number for the UK Service. Since it started, it has launched many related services such as its recent AR marketing service; “Shazam your favourite Brands” with the tagline “You came for music, stay to experience McDonald’s Karaoke, MTN Dew VR Racing and much more.”
Many figures are flying around this acquisition, but the payment is not quite final. Whilst final figures are yet to be cemented, a source claims the deal settled at £300 million ($401 million). We are confident the numbers will be lower than the valuation of $1.02 billion in 2015 from Pitchbooks.
Shazam really has developed as a company, to be valued at a 10 figure sum. This is reinforced by its recent accomplishment of surpassing 1 billion downloads in the September of 2016. Users are enticed to the app allowing users to follow their favourite artists and celebrities on Shazam – provided they have an account – to view music they are ‘Shazamming.’ But Shazam’s features do not stop there, as they have integrated into other apps such as Snapchat, where they send traffic to other music apps like Apple Music and Spotify, to receive payment for purchases from users.
Apple made one of their biggest acquisitions in 2014, in which they purchased Beats for $3 billion, and this then went on to form the base of Apple Music. It now attracts 30 million users, which is next to nothing compared to Spotify’s 140 million users overall. Nevertheless, this acquisition seems to be ideal for Apple, as both companies are trying to progress towards Augmented Reality. Shazam already promotes the Apple Music platform, but what is interesting is to see how Apple will incorporate Shazam into its own brand.
Do you think this is a smart move by Apple? What’s next?