Apple’s acquisition of music recognition AI company Shazam had a big impact on the company’s financials.
According to freshly posted financial results, Shazam’s user base hit 478 million active users in 2018. That’s up from 400 million the year before. Profits before tax hit $158.4 million, a big increase on the $19.4 million it lost in 2017.
The profits are partly attributable to Apple’s $400 million acquisition. Rumors began circulating in late December 2017. However, potential antitrust concerns meant that it was only made official in September 2018.
“Shazam was one of the first apps available when we launched the App Store and has become a favorite app for music fans everywhere,” said Oliver Schusser, Apple Music VP, at the time of the acquisition. “With a shared love of music and innovation, we are thrilled to bring our teams together to provide users even more great ways to discover, experience and enjoy music.”
One of Apple’s first moves was to remove ads from the free version of Shazam’s app. This impacted Shazam’s overall revenues, which fell from $44.8 million in 2017 to $34.5 million in 2018. In August this year, Apple Music launched a trending chart powered by Shazam. This predicts artists who are on the rise. Apple has also baked Shazam into its Apple Music for Artists platform.
Shazam has been downloaded more than 1 billion times in its history. According to Apple, it is used more than 20 million times each day.
Source: Billboard
