– One great benefit for Apple may come from Shazam’s augmented reality tech.
– Report shows that Apple bids about $400million for Shazam.
Rumors have it that Apple is making plans to buy Shazam. Reports specificaally says that Apple is finalizing a deal to acquire Shazam, Shazam app works as a music identifier it also works for movies, and TV shows from an audio clip.
For Apple a side benefit will be attacking other brands, for example if Apple decides to shut down the app, it will hurt competing streaming services like Spotify and Google Play Music, where Shazam sends over 1 million clicks a day, the WSJ reported. It’s also known that Shazam also has a deal with Snapchat noone can say for certain if the acquisition will affect any of these agreements.
Looking at the bigger side of the deal, one great benefit for Apple may come from Shazam’s augmented reality tech. Shazam launched an augmend reality platform for brands, building upon the visual recognition technology it launched back in 2015. The technology lets users scan magazines, books, posters, advertisements, and other physical products which could then launch 3D animations, product visualizations, and 360-degree videos. If Apple wanted to, say, build its own version of Google Lens, this could be a good place to start. It would also build on the company’s existing ARKit efforts, which have made iOS a leading platform for AR developers.
With over 1 billion downloads, Shazam has been popular in its nearly 19 years of independence, but the company only pulled in $54 million in revenue in 2016, while losing $5.3 million in the year was a signal it still had a long way to go. Now as a part of Apple, turning a profit won’t be an issue.
Recode says the deal worth about $400 million price which is exactly what Apple is offering for Shazam. Tracing back to it’s beginning Shazam was founded in 1999 and just last year made $50 million. The company is based in London and has created a database of more than 11 million “acoustic fingerprints” that it uses to identify songs. The company and it’s team basically has great plans and possibility, so for apple making the acquisition there is no loss, all they need is improvement and strategy.