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Shazam on 20 percent of US iPhones, generates $300M in annual digital sales

post #1 of 11
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Popular music program Shazam is doing more letting users find out just what song that is playing; the company's executives say it's driving more than a quarter of a billion dollars in digital content downloads across the major online music outlets.

Shazam


Speaking with The Guardian at Mobile World Congress in Barcelona, Shazam's executive vice president of marketing David Jones opened up on how well the service is doing. Shazam, which recently passed the 300 million user mark and added a new iPad app, tags about 10 million songs per day.

The service's users are tapping through to buy the content they're tagging as well, at a clip of about $300 million per year spent on services such as iTunes and Amazon. Most of that revenue is coming from purchased music, but TV shows, films, and apps are growing as a proportion of Shazam-originated sales.

Jones said that 20 percent of all iPhones in the United States used Shazam last month, with that figure between 30 and 40 percent for European countries like France, Germany, and the United Kingdom. Shazam is currently adding about two million users per week, with some weeks topping three million new users.

The company plans to continue expanding its offerings, which include the aforementioned television and film tagging. Shazam has run more than 200 ad campaigns for more than 140 brands, with campaigns running between $75,000 and $200,000. Jones is confident in the company's ability to continue growing, but he sees a second-screen advertising market far larger than what the company currently brings in.

"While we're making a ton of money now," he told The Guardian, "compared to the billions of advertising that the networks sell, it's a smaller thing. That's the opportunity."
post #2 of 11
I see articles like this and realize my understand of freeium business models is lacking. I would have never guessed they made this much money.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #3 of 11
would be great with Siri integration.
post #4 of 11
Quote:
Originally Posted by iCache01 View Post

would be great with Siri integration.

iCache01: "What song is playing."
Siri: "One moment while I check on that for you."
. . .
Siri: "This is 'I Wanna Sex You Up' by Color Me Badd. It's already in your library and it's your most played song."

More seriously…

iCache01: "What song is playing."
Siri: "One moment while I check on that for you."
. . .
Siri: "This is 'The Stars' by David Bowie. Would you like me to take you to it in the the iTunes Store or save this as a reminder?"


That seems like a pretty powerful tool that will help iTunes Store sales but I wonder if Apple could do this on their own. There are already other companies with this same service. I think it's just waveform sampling which I think iTunes Match already does to determine your tracks.


PS: I'd love for one that does this for video but the only way I could think of doing it is by taking the audio from a video feed but due to "dead air" that is common in audio conversations and not with music the sample would have to be much larger and still might run into too many possibilities.

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post #5 of 11
Quote:
Originally Posted by SolipsismX View Post

I see articles like this and realize my understand of freeium business models is lacking. I would have never guessed they made this much money.


But they don't make this much money (if I understand correctly what you mean by this much). If I understand the article correctly, users purchased $300M of digital contents. I am guessing Shazam makes 5% of that? Still very nice "change".

post #6 of 11
Quote:
Originally Posted by ankleskater View Post


But they don't make this much money (if I understand correctly what you mean by this much). If I understand the article correctly, users purchased $300M of digital contents. I am guessing Shazam makes 5% of that? Still very nice "change".

Excellent point. I hadn't considered that aspect of their business model.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #7 of 11
Quote:
Originally Posted by SolipsismX View Post


Excellent point. I hadn't considered that aspect of their business model.


Here is what I just learned about the Amazon associates program: minimum 4% commission for click-thru sales increasing to as much as 10% (based on product and/or volume). Apple runs a similar program thru LinkShare, and pays 5%. Although these are numbers for website links, I assume it is no different for apps. So it is safe to assume Shazam is making between $15M and $30M per year. Pretty sweet.

 

Your point about Apple providing this service is an interesting one. That could be the end of the Shazam biz model.

post #8 of 11

Shazam is everything an app should be.  Does one thing extraordinarily well, and solves a "problem" that nothing else did.


The amount of time I've wasted in my life desperately trying to remember who a song was by is immeasurable!

post #9 of 11
Quote:
Originally Posted by PaulMJohnson View Post

Shazam is everything an app should be.  Does one thing extraordinarily well, and solves a "problem" that nothing else did.


The amount of time I've wasted in my life desperately trying to remember who a song was by is immeasurable!

Can't tell if you are being at least somewhat sarcastic (based on your second point), but I'll just address the first. I agree that there is something elegant about an app that dies one thing only and brilliantly. But I disagree that this is everything an app should be. Some apps are compelling because of their versatility.
post #10 of 11
Quote:
Originally Posted by PaulMJohnson View Post

Shazam is everything an app should be.  Does one thing extraordinarily well, and solves a "problem" that nothing else did.


The amount of time I've wasted in my life desperately trying to remember who a song was by is immeasurable!

 

Shazam is a great app. I don't buy any songs using it, but I love it 1) for song identification, 2) tagging, and 3) lyric play. 

post #11 of 11
Quote:
Originally Posted by ankleskater View Post


Here is what I just learned about the Amazon associates program: minimum 4% commission for click-thru sales increasing to as much as 10% (based on product and/or volume). Apple runs a similar program thru LinkShare, and pays 5%. Although these are numbers for website links, I assume it is no different for apps. So it is safe to assume Shazam is making between $15M and $30M per year. Pretty sweet.

Your point about Apple providing this service is an interesting one. That could be the end of the Shazam biz model.

It's already a feature built into Google Now (not widely advertised though) so I'm sure it won't be long until it's a built in feature with iOS.
"I got the answer by talking in my brain and I agreed of the answer my brain got" a 7 yr old explaining his math HW
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"I got the answer by talking in my brain and I agreed of the answer my brain got" a 7 yr old explaining his math HW
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
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