As per a statement via BuzzFeed, Apple has announced it will be acquiring Shazam, the incredibly popular music recognition service that originally launched nearly twenty years ago in Britain. This comes after TechCrunch reported last week that the Cupertino company would buy the service out for around $400 million, a far stretch from its previous $1 billion evaluation.
“We are thrilled that Shazam and its talented team will be joining Apple,” Apple spokesperson Tom Neumayr said in a statement to BuzzFeed News. “Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS. Today, it’s used by hundreds of millions of people around the world, across multiple platforms.”
“Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users,” Neumayr continued. “We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement.”
Now that Apple is buying Shazam, it could mean big things for the app. For one, it could be integrated into the next version of iOS to identify songs on the go much like the Google Pixel 2 can, while the identification company’s AR technology could also be used to improve ARKit. If you’re unfamiliar, Shazam’s AR platform lets you scan objects to be presented with things like 360-degree videos and 3D animations right on your phone’s screen. Considering Apple is making a bit push into augmented reality, it would make sense to see Cupertino express interest in this space.
Buying out Shazam also rids Apple of having to pay the service for click-throughs to iTunes purchases like it does now. This could also mean other streaming services like Spotify and Google Play Music could eventually not be allowed to pay the service to place links to their respective platforms in song and artist listings, therefore putting pressure on the rest of the industry. Why? Because according to The Wall Street Journal, Shazam accounted for 10% of all digital music purchases last year.
It’s also worth mentioning that reports suggest both Spotify and Snap (the company behind Snapchat) were in the running to acquire Shazam, but Apple ultimately bid them out.
Apple’s exact plans for Shazam under its belt and how much it paid for the service are unknown at this point, but we’ll let you know if more information surfaces.