Apple just bought Shazam. What does it mean for the next iPhone?

Apple just bought Shazam. What does it mean for the next iPhone?

Apple just bought Shazam. What does it mean for the next iPhone?

"Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users", Apple said in an emailed statement.

Shazam has been downloaded over 1bn times and although Shazam is popular with smartphone users it has struggled to make much money, with revenues of $54m in 2016.

Apple shares closed in the green Monday, following confirmation from the tech giant it has purchased London-based music app, Shazam.

Last week, news broke out that Apple was about to finalize a deal to buy Shazam.

Shazam, which was founded in 1999 in the early age of online music, has struggled to find a way to make money from its technology, even as it said it reached one billion downloads on smartphones a year ago. Siri is outclassed in terms of functionality by Amazon's Alexa and the Google Assistant, and Apple's HomePod speaker hasn't hit the market yet, even while Google and Amazon are onto the second generation of their smart speakers.

The exact valuation of the deal has not been publicly disclosed, but given that yesterday's report was accurate, $400 million is likely in the right ballpark. "We have exciting plans in store, and we look forward to combining with Shazam upon approval of today's agreement", the company told the publication.

Shazam already integrates with Apple Music, referring many of its 100 million users to play songs on its platform. Shazam generates revenue by selling advertisements on its app.

The reason this move is interesting is because Shazam isn't all that profitable.

"Spotify has made the discovery of new music front and centre of what makes it a compelling proposition", said Mark Mulligan, from the consultancy Midia Research.

As Apple Music chases Spotify's subscriber base numbers, such acquisitions will help add more value to Apple's own services.

The technology is also no longer quite as novel, with Shazam facing rivals such as SoundHound and with smartphones capable of ever more advanced recognition functions.

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