IT

Why Apple's Shazam acquisition could be a big deal for the HomePod

Why Apple's Shazam acquisition could be a big deal for the HomePod

'Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users.

With the acquisition of Shazam, Apple will be able to embed its capability more deeply into Apple's music offerings.

"We are thrilled that Shazam and its talented team will be joining Apple", a spokesperson for Apple said in a statement obtained by the Verge.

The music recognition app has been courting Snapchat and Spotify as well, but the Cupertino-based tech giant won out in the end.

The acquisition cost is far from the $1 billion Shazam was valued at during its last funding round, but the company has had a hard time finding a viable business model, pulling in only $54 million in revenue in 2016.




Apple will now save the commission which Shazam was charging them to divert user to the iTunes.

Through all of this, Shazam has developed some interesting partnerships, specifically with Apple and Spotify (who together get around 1 million referrals each month via Shazam), and Snapchat, which now has an integration with Shazam where Snapchat users can "recognize music, engage with Shazam content, and send their music and artist discoveries as Snaps to their friends". Though numerous reports this week revealed that Apple is expected to pay around $400 million for Shazam.

So there are the primary reasons why Apple bought this music-recognition app.

Even so, Apple announced Monday that it's purchasing Shazam. "Today, it's used by hundreds of millions of people around the world, across multiple platforms".

Apple has long portrayed itself as a company that goes the extra mile to protect its users' privacy, so it would presumably reject the idea of allowing a third-party to run an always-listening service on its devices. It's also branched out into more marketing services based around visual recognition - essentially augmented reality plays where users can capture snaps of images that lead them to more content from a brand or another organization. The app has single aim to identify music that is playing and connect users to a service to download or stream it.


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