The acquisition of Shazam Entertainment makes sense for many reasons, the most obvious being that it could help Apple boost its music subscription service, whose user numbers now lag far behind that of Spotify. As such, songs detected and discovered by Shazam will eventually lead to a suggestion that the users acquire an Apple Music subscription. "We have exciting plans in store, and we look forward to combining with Shazam upon approval of today's agreement".
If Apple decides to shut down the Shazam app, it would take away referrals to Spotify while still enjoying the music recognition services that Shazam is known for.
Shazam, over the years, has been offering various other services where it directs the users through to other sites to download and listen to their favorite music; provides more information to users about the music and the artists behind it; and, keeps charts of popular music based on the clips that it hears, and that people want to identify.
Music streaming provider Deezer S.A., France's answer to Spotify, officially launched in Israel on Monday, allowing Israelis to join the company's 12 million worldwide monthly subscribers.
The discovery-oriented use case would be similar to Spotify's messaging around its acquisition of audio recognition startup Sonalytic in March 2017.
It seems Apple has been preparing for the Shazam acquisition for a long time. Apple is lagging behind its big rivals when it comes to smart speakers and digital assistants.
The partnership could help Spotify, the world's largest streaming platform with more than 60 million users, in developing the Chinese market with Tencent support. "If you're Apple, your priority is not just in the device and hardware business, but also increasingly in the original content business".
But Shazam has other features, such as the ability to identify television shows, that do not yet work with Siri. Apple has been working on the Shazam deal for about for last five months.
The company now has a number of advertisers using its AR solutions, including names such as McDonald's, Coca-Cola, Nestle, BMW and Marvel. Shazam has 250 employees who are coming with the acquisition, and Apple even mentioned that it's "thrilled that Shazam and its talented team will be joining Apple" in the statement announcing the acquisition.