What it is: Apple may be acquiring Shazam, an app known for recognizing songs that it hears.
Apple’s next acquisition may be Shazam, the popular music app that can recognize songs when it hears only part of it. Shazam makes money by recognizing songs and then providing links to popular music services for users to purchase the song such as through iTunes or streaming music sites like Spotify. So on a basic level, Apple could be buying Shazam so they won’t have to pay commissions to “Shazam any more for directing people to iTunes while also cutting off a source of income to rivals like Spotify.
Yet a more strategic reason Apple may buy Shazam is because Shazam is working with augmented reality. Shazam’s research will supposedly let you aim a camera at an item such as a book or a magazine and see augmented reality content about that object. This could create new ways to market a product. Aim your camera at a book in a bookstore and see reviews of that book by other people. Aim your camera at a restaurant and see Yelp reviews of that restaurant’s food and service.
Augmented reality is likely the real prize in a Shazam acquisition, but stealing away links to rival music services is just a bonus. Apple typically doesn’t acquire companies just for the present but for the future. Augmented reality is likely that future while incorporating Shazam’s music recognition features into Siri will boost Siri’s features against rivals like Alexa.
Shazam can not only recognize songs but movies and TV shows as well. So let Siri listen to an audio clip of a TV show or movie and it will identify that TV show or movie and provide links to that content so you can purchase it. This is simply another way to drive people into buying content online.
The future of Apple’s products can often be found int he companies they acquire, so watch these acquisitions and in a few years, you’ll see the results. compare that to acquisitions made by other companies that simply react to the present with no long-term future vision involved such as Microsoft’s purchase of Nokia’s mobile phone business for several billions, which they simply lost when Windows Phone failed to take off as a mobile platform.
As long as Apple continues its long-term strategic vision in acquiring companies, the company and its future products will continue thriving.