Apple Is Buying Shazam For $400 Million

Apple Is Buying Shazam For $400 Million

The tech giant Apple is reportedly buying Shazam! The very popular music app that lets you identify songs could be bought by Apple soon for $400 million.

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Apple is reportedly buying Shazam!  The very popular music app that lets you identify songs and all kinds of different clips from TV or radio, could be bought by Apple within the coming days.

The deal is reportedly amounting to 400 million dollars. This is a very popular app and a lot of people have it on their phones. Thе deal could help Apple in the future with a lot of other things. Some of these things might not pop up in your head, but let’s go over them.

The first one is that Shazam is really good at identifying different music and they could use that in Apple music all across the board. Secondly, it will actually save them money from Commission’s that they pay Shazam for sending its users to iTunes store to acquire content. When you chose a song to download and you click to buy that song from iTunes, Shazam is actually getting a cut of that check, so Apple will obviously own a hundred percent of it if they own Shazam. They’ll save money here and there.

Another reason which Apple is probably favoring more is that can hurt the competitors like Spotify, and Google Play Music, where apparently Shazam sends 1 million+ clicks a day. If they stop people from going there and send them to Apple music, Apple would benefit significantly.

Shazam also signed a deal with Snapchat, but it’s unclear how this deal will affect the agreement. But Snapchat and Apple are actually pretty close, meaning that this deal may work for them. The main benefit for Apple may come from Shazam’s reality tech, in which they launched a platform for brands, back in 2015.

This platform allows users to scan books, magazines, posters, ads and any other physical product, which could then introduce product visualizations, 3D animations and also 360-degree videos. If Apple wants to build its own “google lens”, then this could be an ideal place to start and obviously, it could build on Shazam’s ARkit efforts, in which Apple has invested into.

Overall, Shazam has over a billion downloads. It’s a very popular app, but the company has only pulled in 50 million dollars in revenue last year, but after Apple`s acquisition, this will no longer be an issue.