According to sources, if all goes according to plan the announcement is expected sometime today. Apple has its sights on Shazam, the music identification application that boasts their one billion downloads to date last year. Apple has become a heavyweight in the space of music sales, since the birth of the iPod.
One question some may have about this acquisition is how it would benefit Apple, Tech Crunch highlights that Shazam drives a substantial amount of traffic to Apple Music, Spotify and other streaming services once the song is identified. Apple Music can benefit from the increased traffic is the algorithms were altered or if this acquisition would mean that Apple Music was the primary streaming service available for direct listening.
Apple has been said to be acquiring Shazam for around £300 million, but as the announcement is made the details may change. As at this point, it is all hear-say from sources.
Music Business Worldwide points out that, Apple Music’s biggest competitor, Spotify, has made a similar acquisition with a startup that is also in the area of music identification.
For Apple Music and Spotify driving traffic to their services can generate a rise in income, but Shazam also provides a platform that generates steady advertising income, since the application is also able to identify audio from television advertisements as well.
It will be interesting to see what is said along with the purchase announcement, but we will be here to keep you updated!
UPDATE 5:42pm: Apple has officially announced its acquisition of Shazam for an undisclosed price.