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Newsfeeds, Beacons, and Google for Your Eyes: The Future of Shazam

  • Date added: August 28, 2015, 4:28 pm
  • Author: Christine Lagorio-Chafkin
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The human face is a moving landscape of tremendous nuance and complexity. It is a marvel of computation that people so often effortlessly "There may be 100 million people opening the app every month, if they don't come frequently enough and stay, then it's just a little app that will give me a benefit--but there's no way to monetize that meaningfully," says Thales S. Teixeira, a professor of marketing at Harvard Business School.

Shazam boasts that it is responsible for the sale of one-in-10 music tracks in the United States--400,000 a day--and makes money from referral fees from digital-download retailers such as iTunes and Amazon. And, impressively, the company has successfully forged partnerships with just about every major player in online streaming, managing to be a neutral player while making deals with Rdio, Spotify, Beats, Deezer, and Google Play.

But those referral fees are no longer Shazam's primary line of revenue. Instead, in-app advertising, paired with deals made with advertisers, make the most money, according to company executives. A narrow slice of revenue numbers that the company has released show that in the last six months of 2013, Shazam brought in  total revenues of $25.6 million, and reported a loss of $8.8 million.

"Shazam wants to engage with consumers wherever sound is playing a role in their lives; whenever they are thinking about music," says Teixeira.

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Source: "Newsfeeds, Beacons, and Google for Your Eyes: The Future of Shazam", Inc.com - Jan 23, 2015

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