Shazam joins the Apple Team
The capabilities for digital technology are endless. As more years pass, the amount of new devices and services is set to skyrocket, including the areas that will no longer be required. The biggest leading service? Online music streaming.
Apple has been at the head of modern innovation since the sale of the first Apple I computer in 1975. Based on their latest business move, they show no signs of slowing down either. On December 11th, Apple announced their company would be buying out the music identification and streaming app, known as Shazam, for $400 million.
For those unfamiliar with Shazam, the app allows the user to search for a song by letting it listen to the music through the phone. Shazam will then bring up the song title, artist, and album the song can be found on. Their other services include connecting Apple Music or Spotify playlists to play through Shazam, provide quick links to the Apple store, find new music, and make you aware of what’s popular in your town and other parts around the world.
Rumors began speculating after the news where multiple anonymous employees reported to Digital Music News that Apple is considering going to a stream-only music model, thereby doing away with iTunes downloads. Apple denied such statements to 9to5Mac. The phase-out, however, is almost inevitable; media analysts in 2017 have estimated over 132 million people are subscribed to some sort streaming music service. To compare, the figure is shown to vastly outpace the number of Netflix subscriptions.
The amount of music downloads has also taken a dramatic turn. iTunes downloads in 2012 estimated over $3.9 billion. Now it is being projected that sales will fall to $600 million by 2019.
In the past few years, Spotify has been Apple’s strongest music competitor. Midia Research digital content consultant, Mark Mulligan, chalked up the stiff competition to the simple matter of data. He stated, “Apple just doesn’t have the same amount of data about listening tastes…it can’t drive recommendations with as high a degree of accuracy and precision”.
This purchase will be a large help to improve iTunes music recommendation engine and put them on the same playing field as Spotify.