Yesterday Apple confirmed the purchase of music-recognition app Shazam. News of the deal had first surfaced last week on TechCrunch.
It is believed the tech giant paid $400 million (£300 million). This is significantly lower than the $1 billion value put on Shazam at its height two years ago.
Shazam has been around a long time and was one of the first apps to launch after the iPhone. It consistently appears in the most downloaded lists released by Apple. The app allows users to identify songs playing on the radio or elsewhere by listening to a short clip.
Shazam made its money by directing users to buy songs in iTunes and taking a cut of sales. The rise of streaming services like Spotify put a real dent in revenue from this avenue. More recently Shazam teamed up with advertising companies to direct users to websites when it heard an advert on television. The idea never really took off.
It is unclear at the moment how Apple plans to use Shazam within its business model. It could be used to supplement their Apple Music streaming service as they battle Swedish giant Spotify or to compete with Google’s built in music recognition service.
An apple spokesman said, “Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms.
“Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users. We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Meanwhile Shazam said, “We are excited to announce that Shazam has entered into an agreement to become part of Apple. Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we can’t imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users.”