A major acquisition in the streaming music market … Apple has formalized Monday, after several days of rumors, the purchase of the music recognition application Shazam. The transaction is estimated at $ 400 million. This purchase will allow the Cupertino company to have a lot of data on songs identified by users before they emerge in trends.
A historic partnership
With Shazam, Apple will be able to develop its service more quickly music streaming, Apple Music, which already has more than 30 million paid users. Because if the relationship between Shazam and Apple have been important for many years, this acquisition ensures Apple that the application will not establish partnerships with competitors in the sector, including Spotify. It will also allow Apple to save the significant royalty it paid Shazam for the app to default to purchasing songs recognized on iTunes.
Shazam's technology itself could also bring a lot to Apple. The application did not become the market leader by chance. It simply offers the best music recognition algorithm and can recognize a song in just a few notes. A feature that Apple could integrate into its application Music for example.
"We are happy that Shazam and his talented team joins Apple," said an Apple spokesman at the site The Verge. "The combination of Apple Music and Shazam is natural, we share the same passion for discovering music and offering a good experience to our users," he explained without giving details of what would happen. Apple's application. "We have exciting plans and we are waiting for the validation of today's agreement to communicate them," the spokesman said.
A gold mine of data
In practice, Shazam is also a gold mine of data. With over a billion downloads in 2016, the app has information on the likes of millions of people. Above all, the songs that users seek to recognize with the app are usually new titles that they like, but they do not know (yet). The application can therefore easily establish by studying the recognition data that they are the songs that should become trend in the following days or weeks.
So much data that could prove very useful to Apple for the development of its streaming service. The brand with the apple could for example use it to make playlists of discoveries of the new tendencies. A way to take a step ahead of Spotify and Deezer.