There goes the music industry…or did Apple just make the best purchase ever to capture the music market?
Funny enough, the purchase decision falls deeply in line with Apple’s goals to promote Apple Music. This helps Apple edge closer to a rival bidder of the app and competitor in streaming, Spotify.
Although receiving offers from both Snap and Spotify, the music recognition app made it exclusive to be purchased by Apple according to Tech Crunch sharing the news last week. They haven’t fully confirmed the amount of the company’s purchase but have heard from several sources that it runs the price tag of roughly $400 million.
Apple officially confirmed that they are purchasing Shazam, a company based in London, early this morning.
This is the quote from Apple communications:
“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.”
Shazam has two main pieces of technology that make it unique and ahead of its time. This is the recognition of music playing through the voice recorder on your phone and the ability to identify objects using the phone’s camera.
These pieces of technology seem like a worthy investment for the iOS and the iPhone giving Apple the potential to develop built-in technology available through the mobile device. This would also help to pull away from its competitors if it were able to have these capabilities by default, or better yet, standard.
The announcement also came from Shazam’s reps. Here is what they had to say:
“We are excited to announce that Shazam has entered into an agreement to become part of Apple. Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users.”
In addition to the Shazam technology, Apple has long made itself the go-to marketplace for purchasing music, discovering music trends and influencing the music industry as a whole. One of these influences includes where music falls on the Billboard HOT 100 Chart.
According to Billboard.com, “Hot 100’s average ratio: 43%, sales; 31%, airplay; 26%, streaming” – If you’ve watched the trends in music, you’ll see that if a single releases at the top of iTunes, you’re bound to see it at the top of the Billboard HOT 100, which is a coveted recognition for most musical artists.
There is a long list of areas in which Shazam benefits Apple, this even includes the close to 1 million referrals of music purchases from directly using the Shazam app. Apple also edges control to deny its competitor, Spotify, – if they choose – to not receive referrals from the app which previous articles state could be around the million mark as well.
What are your thoughts? Do you feel Apple made the right choice? How will this affect your music experience as a whole in the future?
Let us know in the comments below.