After lots of speculations and rumors over last few weeks regarding APPLE acquired SHAZAM.
In a recent update, it is now confirmed that London based Music and image recognition startup SHAZAM is acquired by APPLE.
Apple bought the Shazam for a whopping $400 M. The purchase is Apple’s biggest acquisition since it bought rapper Dr Dre’s headphones company Beats Electronics for $3bn in 2014.
Shazam lets users identify songs, movies, TV shows as well as commercials from short audio clips.
Shazam was formed in Hammersmith, west London, by a group of friends frustrated that they often had trouble identifying the names of songs they liked on the radio. It started before smartphones and iTunes, so to use the service people had to call a number. Then put their phone up to the radio, then receive a text identifying the song.
Shazam, which creates “acoustic fingerprints” of music and returns song information. Then links for smartphone owners to buy or listen the tune, has been downloaded more than 1bn times. The app is already used by Apple’s assistant Siri, allowing users to ask: “What song is playing?”
Although Shazam is popular with smartphone users it has struggled to make much money,
with revenues of $54m in 2016.
Despite its low revenues, Shazam can help Apple in a number of ways. The most obvious would be with Apple Music, where Shazam’s team could help improve the experience of the service. If Apple decides to shut down the app, it would also take away referrals to Spotify, which together with Apple Music gets 1 million clicks per day from Shazam. Also, Shazam’s music and sound recognition, which is already integrated with Siri, could gain a deeper integration with iOS.
Apple is also likely interested in Shazam’s augmented reality technology, which could help improve its own offerings.
Shazam has visual recognition tech and an AR platform for brands that could help in the development of a Google Lens-type feature and improve its AR Kit efforts.