Shazam is finally profitable after a billion downloads

Shazam, the mobile and desktopapp that acts as a digitalear and song identifier, crossed the 1 billion download mark recently, according to a report from Billboard on Thursday.

The London-based company, Shazam Entertainment Ltd., also announced that it has achieved profitability,at long last, thanks toa new focus on advertising sales, alongside revenue from commissions on digital music sales and traffic referrals to streaming music sites.

Shazams CEO told the Wall Street Journal that the company is still sending 1 million clicks daily to streaming services likeSpotify, Apple Music and others who do pay it for the traffic and conversions when they make a purchase. But advertising revenue now is greater for Shazam than other sources.

Ads on Shazam are displayed while app users scan their environment to identify a song or other media like TV shows. The ads on display oftenhave nothingto do with music.

As TechCrunch reported then, Shazam raised $30 million in equity funding early last year at which point the companys valuation had surpassed $1 billion.

The companyhas been embarking on partnerships with other app makers andsocial media platforms in a quest to drive up engagement and keep winning over users.

Competitionhas increased over the roughly 15 years of Shazams existence. Competitors now rangefrom iOS and Android apps like SoundHound and MusixMatch, to audio recognition technology from the likes of Google, Facebook and Amazon.

For example, Amazons Echo allows users to identify songs that are playing on integrated streaming media services like Spotify by asking questions like What song is playing? or Who is this artist?

Read more: https://techcrunch.com/2016/09/29/shazam-is-finally-profitable-after-a-billion-downloads/