Decades ago, if you heard a song and wanted to know who it was by, you basically had to hope against hope that you were with someone who had an encyclopaedic music knowledge, or that your ability to remember the melody would pay off later. Since the rise of smartphones, this task has been made immensely easier thanks to apps such as Shazam. Now, it appears that the invaluable music app has been eyed by tech giants Apple, who have reportedly made plans to purchase it for a surprisingly low price.
As Techcrunch reports, Apple has made moves to buy the service for $400 million, a far cry from the $1 billion that it was valued for back in 2015.
Founded back in 1999, Shazam has made a name for itself as one of the most prominent music recognition services in the world, with its flagship app boasting more than 1 billion downloads back in October of 2016.
However, as Techcrunch notes, the service has been struggling somewhat in recent years. Despite making £40 million in revenue for the 2016 financial year, the company had made losses of £5.3 million in 2016, and £16.6 million in 2015. Whether this perceived lack of profitability explains the lower price Shazam has reportedly been sold for is unclear, but it’s certain that Apple has scored a bargain here.
As The Verge makes clear, it seems that Apple’s decision to purchase Shazam would be highly beneficial in the long run. As it stands, 10% of Apple’s digital download sales come from referrals made from the Shazam app. By purchasing the app, it removes the amount of commissions that Apple are forced to pay the company.