Apple confirms Shazam acquisition: Here’s what it could mean

Apple has acquired Shazam, a popular music recognition app.

Apple has acquired the popular music recognition app Shazam for $400 million making it one of the company’s most expensive purchases ever. The sale price is far less from the UK-based app’s $1 billion valuation during its last round of funding. The deal was first reported by TechCrunch and later confirmed by Apple. While Apple didn’t elaborate why the company acquired Shazam, it said the app is a “natural fit” for its music streaming platform.

Apple’s purchase of Shazam might not grab eye calls immediately, but the acquisition could help prompt more people to buy its products – and buy into the ecosystem.

What is Shazam?

Shazam is an app which helps users to identify music you are listening to. All you need to do is type the “Shazam” button on the app and it will identify the song it hears after a few seconds. And once the app identifies the song, it will display all the information you need to know about the track, including artist info, sharing options, and other details. Shazam app can be downloaded from the Google Play store and Apple Apps store.

How popular is the Shazam app?

Shazam, one of the first apps to be popular globally, has been downloaded over 1 billion times and is used 20 million times a day around the world. In its earlier days Shazam was hailed for its unique idea. However, the app is struggling to expand its users base. Although the app now comes with a number of new features, the fact remains that Shazam has been struggling to raise money. In 2015, Shazam was valued over $1 billion after receiving a $30 million investment from global  investors. Shazam generates revenue by selling advertisements on its app.

Why Shazam is a perfect fit for Apple?

Apple has had a long relationship with Shazam. The app already integrates with Siri. With the acquisition, Apple could further differentiate Siri by tightly integrating Shazam into its voice-based digital assistant. There’s also speculation that Shazam’s music-recognition feature might be added to Apple’s long-delayed HomePod intelligent speakers. It could also be integrated with Apple iTunes.