Shazam Business Model

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What

“The way Shazam started off its business model was that after five SMS ‘tags’ you had to pay for it,” said Marovac. “Then it moved into lead-generation for MP3s, then it became an. Shazam remains the biggest app for instantly identifying songs playing practically anywhere: bars, clubs, restaurants, parties, wherever. Another digital media business model operating at a. Our culture is rooted in a cooperative business model that focuses on your success and not shareholder profits. Leaders from our participating community financial institutions make up our board of directors, so every decision is made for the benefit of your business. As a not-for-profit corporation, SHAZAM’s primary interest is helping you. Shazam has a freemium business model, which requires a thorough understanding of the product, the industry, and the consumer. The freemium pricing model allowed the startup to grow its market and build brand recognition, by eliminating price barriers for the users.

Overview

Shazam business modelBusinessBusiness model definition

Shazam represents an “exemplar” multisided business model in the music sector, where content is free to users and paid for by advertisers. Shazam is a free app with which smartphone users can identify music and TV programs by opening the app when the song or TV show is playing. The app portrays advertisements, and because the advertisers and app users are kept separate – advertising companies do not, nor could not easily themselves, target individual users – this is an example of a multisided business model. In a product business model that operates alongside the multisided business model, Shazam also offers Shazam Encore, a premium version of the app, at a cost of £6.99. It is an ad-free environment and includes integration with Spotify and Rdio. Shazam Encore users can also enjoy Full Track playback with Spotify. This write-up will focus on the free Shazam app.

History

Shazam Entertainment Limited was founded in 1999 by Chris Barton, Philip Inghelbrecht, Avery Wang, and Dhiraj Mukherjee. In 2014, Shazam had more than 100 million monthly active users and had been used on more than 500 million mobile devices. Shazam announced its technology has been used to identify 15 billion songs.

Customers

Shazam Business Model Canvas

Shazam customers are the individuals who are curious to know more information about the songs they are listening to or the TV shows they are watching. They must have an Internet connection to access to Shazam database. Shazam launched in London and is currently available in 13 different languages. Shazam customers span wide demographic ranges – young to old, wealthy to lower-income, men and women, etc.