Shazam, A Large Source Of Referrals For Spotify, Is Acquired By Apple

Shazam, A Large Source Of Referrals For Spotify, Is Acquired By Apple

Its app has a single goal: identify a song that's playing and connect users to a service to download or stream it. Surprisingly, Apple Music has struggled to compete on the data front in the streaming landscape, lagging behind Spotify on its quality and depth of algorithmic recommendations despite acquiring music data startup Semetric in 2015. Terms of the deal weren't disclosed, but an unidentified source claims Apple will pay $400 million for the United Kingdom -based startup.

For almost 10 years, Shazam has been something of a one-trick pony.

In a move that totally makes sense for the brand, Apple has confirmed it acquired the music and image recognition service Shazam.

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Leaving aside the very real possibility that Apple splashed out purely to create the portmanteau name ShazApple, music discovery may still be at its core.

An Apple spokeswoman, declining to confirm how much the Cupertino company paid for the British service, described the two companies as "a natural fit".

Apple did not give a price for the acquisition.

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With a digital user base that expects an increasingly personalised music experience, the cache of data from Shazam could prove to be a significant boon to Apple.

Apple did not elaborate on its plans, but the company will not be able to make any major changes to Shazam until it secures regulatory approval. With the Shazam app from the App Store, you just hold up your iPhone to the song. For instance, Apple Music could monitor Shazam activity around certain songs and artists before they are even added to the streaming service. Not the iTunes Music Store, though. The reality may actually be rather different - the Beats 1/Apple Music ecosystem could no doubt lay a claim to having broken many artists/records if only their execs were ever allowed to tell anyone about it. Shazam allows users to identify music, movies, commercials and TV shows by listening to short audio clips.The deal is reportedly worth $400 million and Apple hopes this deal will help with their bigger ambitions in the music business.

"They're putting more fuel in their gasoline tank", Ives said.

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