Apple is reportedly finalising a deal with Shazam right now. According to a reports, Apple will be spending as much as $400 million to buy the popular song identification application. The company had integrated Shazam with Siri earlier, allowing users to use its voice assistant for recognising music etc. While Siri uses Shazam’s technology for this purpose, it then directs users to iTunes to listen to the same music.
Apple will be spending as much as $400 million to buy the popular song identification application.
The iPhone maker will likely be saving money on the commissions it pays to Shazam for this redirection. Reports say most of Shazam’s revenues from last year came from the money it received from Apple. Of course, acquiring Shazam’s identification technologies is also useful for Apple. Shazam doesn’t just recognise music anymore, the app is also capable of identifying movies and TV shows based on audio samples.
Further, Apple may use the buyout for a boost to Apple Music. Shazam reportedly sends millions of clicks over to Google Play Music, Spotify and more. So, those services could stand to lose these clicks if Apple decides to shut down Shazam.
Apart from all that, Shazam had also built its own augmented reality technology in 2015. With Apple’s recent interest in AR, it’s possible that the company wants to take advantage of this same technology.