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Why Apple's Shazam acquisition could be a big deal for the HomePod

Why Apple's Shazam acquisition could be a big deal for the HomePod

Further reports reveal that fans of the tech giant will notice the effects of the acquisition through the Apple Music app, wherein Shazam is expected to be integrated and consequently decrease the user demand for Spotify.

The acquisition cost Apple a hefty $400 million price tag.

"Shazam is one of the highest rated apps in the world and loved by hundreds of millions of users and we can't imagine a better home for Shazam to enable us to continue innovating and delivering magic for our users", said Shazam. In September, Stockholm, Sweden-headquartered Spotify, which reports 60 million paid users, posted job openings for people with expertise in Israeli music, generating speculation that it may enter the local market soon as well. However, the user numbers are still only about half of that of Sweden-based music streaming service Spotify.

In a statement, the Cupertino-based company announced the news, calling the music recognition app a natural fit with Apple Music.

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The acquisition makes flawless sense when you consider Shazam's talents, and Apple's focus on where to take technology next.

'We have exciting plans in store, and we look forward to combining with Shazam upon approval of today´s agreement'.

This is thought to be one of the main motivations for Apple - the world's biggest company by market capitalisation - which can effectively cut out the middleman by acquiring Shazam, saving millions of dollars every year.

Another way in which Shazam could help Apple is its augmented reality platform that will allow the tech giant to improve its efforts in advancing the ARKit. The Irish band's new release, Songs Of Experience, toppled Swift's three-week reign at No. 1 on the Billboard 200 album chart, even though Reputation got a boost when it was made available to stream on all services on Dec 1. If Apple becomes as open as Shazam to sharing such data with labels (which, if history is any indication, is highly unlikely), content creators and owners could have access to much richer datasets around individual songs, beyond the narrow focus on skip and play-through rates that now pervades the business. It was quick to move on third-party apps when Apple first opened up the iPhone, but it's remained relatively stagnant ever since. Apple and Shazam declined to comment on what will happen to these partnerships once the deal closes.