Are you a regular user of Shazam? If yes, then your favorite app is going to be tagged with a brand name of Apple. As giant tech company Apple is reportedly buying the music and sound recognition app Shazam. As according to a report published by Recode, Apple is buying it for $400 million.
Shazam is a popular app with more a billion downloads on Play Store. The app helps a user to identify a song, a movie, a TV show and an audio clip using the lyrics of the song. Shazam is a popular app which gives millions of visitors diversion from its platform to other music and movie apps like Google Play Music, Spotify, iTunes and much more. It seems like the app will be tagged with the name of Apple.
If the deal goes successful, then Apple might be a considerable profit. Two ways can define this benefit; the first one is that the company will now save the commission which Shazam was charging them for diverting visitors to iTunes. And the second one is if the company shuts the services of Shazam, this will block the diversion of a million of clicks to other streaming service providers like Spotify, Google Play Music, and others.
The company which is currently owning Shazam has pulled a revenue of around $54 million in 2016 while losing $5.3 million in the year and this indicates that the app still can create massive results. Apple is buying Shazam to turn stronger in front of its competitor, and this may happen that Shazam will run as usual and Apple will charge other streaming platforms for clicks and user diversion as Shazam was charging.
We do not doubt that Apple will recreate the app with much more innovative features and will also pump the profits of the application. There are rare chances that the company will make the app available only for iOS users as the app is already having millions of Android users.