See Ya Later, Shazam Ads
Well that didn’t take long. Earlier this week Apple finally closed on the purchase of Shazam, and they’ve already announced their plan to make the app ad-free. Given that Apple paid $400M for the music recognition publisher, you might wonder what they’re planning for the service if they’re not going to directly monetize it.
Industry experts are guessing that Apple’s best use for Shazam is as a music referral tool. Right now if you use Shazam to ID a song you can press a button to buy a download or stream it on services like Apple Music and Spotify. Now that Apple owns Shazam you can bet they’ll say sayonara to Spotify, and route all of Shazam’s traffic back to their own music ecosystem. It’s estimated that Shazam’s app identifies an average of 20M songs a day worldwide, so this could become a really strong feeder system into the Apple Music mothership.