Shazaming with Apple

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Shazam logo facing Apple logo on blue background

Music has always been a vital ingredient to the success and growth of Apple. Followed by the acquisition of Beats and the launch of Apple Music in 2014 and 2015 respectively.

Therefore, it came as no surprise when Apple, last Monday, announced that it had bought Shazam.
Shazam, the favourite UK based music app, is one of the first apps to utilise the microphones on smartphones to recognise songs, movies, TV shows and commercials.

Shazam has a considerable user base. The app recorded a whopping 20 million users across the U.S. for November of this year and 4 million in the U.K. Having been downloaded more than a billion times since its inception, Shazam now has over 120 million users worldwide.

Shazam generates its revenue through paid advertisements. They have come up with an innovative way to display ads while users are searching for songs without full-screen interference. Additionally, Shazam makes money through referring users to various music providers, which will apparently be an advantage for Apple.

What does this mean for Apple Inc.?

Buying Shazam means Apple has acquired all the intellectual properties of Shazam which includes the 200 patents the song recognition app was granted.

Currently, Apple [NASDAQ: AAPL] trades at $176.42 on the U.S. market. Apple Inc. was estimated to have brought Shazam for $400 million; the stock price may decline in the coming weeks making it an excellent time for investors to buy.

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