Apple is finalizing an agreement to procure Shazam, which is an app that enables you to identify songs, TV shows, and movies from an audio clip, as per Tech Crunch. According to the Recode, the deal is reportedly for $400 million and the news is also made confirmed by them.
For the company, obtaining Shazam is the sound and music recognition technologies of the company. It will also be saving some amounts on the commissions that Apple pays to Shazam for delivering users to its popular iTunes stores for buying content that helped in making majority of the revenue for Shazam in 2016, and raised 10% of all the sales on digital download, as per the Wall Street Journal.
One side advantage of this if anyhow Apple decides in shutting down the app, it will be affecting competing streaming such as; Google Play Music and Spotify, where Shazam propels over 1 million clicks per day, a reported by the WSJ. Shazam also holds a deal with Snapchat. Though for now it’s unclear as how it will be affecting any of these deals.
But the actual benefit for Apple may arrive from the augmented tech of Shazam. Shazam released an augment reality platform for brands, back this year, that’s built upon the visual recognition technology that it launched earlier in 2015. The technology users to scan books, magazines, advertisements, posters, and other physical products that could later release product visualizations, 3D animations, and also 360 degree videos. If Apple willed in saying that it wants its own version of Google Lens, then that might be a good place to begin. It would also develop on the existing ARKit efforts of the company, which have created the iOS as one of the leading platforms for the developers of AR.
For over other 1 billion downloads, Shazam has been familiar in its independence of around 19 years. But in 2016 the company had pulled down to revenue of $54 million, whilst losing $5.3 million in the year was a sign that it had a long path to go. Now being a part of Apple, turning a profit won’t be a problem.