December 16, 2014
With the launch of a new mobile app, Shazam hopes its latest features will increase the average time people spend using the app. The new features will allow users to see what songs are being searched for the most globally. Additionally, users will now have access to a stream of content such as articles and Twitter posts about different artists and songs. Also worth noting is that Spotify users will have the option to add the music they discover on Shazam to a Spotify playlist without leaving the app.
According to The Wall Street Journal, the app “features maps that show which songs are being Shazamed most in every part of the world, and tallies the number of listeners Shazaming each track.”
Since the average user session is less than one minute, Shazam is aiming to increase the average amount of time users spend on the free app (especially since the service generates much of its revenue from advertising).
Shazam’s revenue stream also includes commissions through partnership with third party music retail sites. “Shazam drives about 7 percent of digital music sales for retailers such as Apple’s iTunes store,” WSJ notes.
The partnership with Spotify was created to accomplish similar goals. According to the article, the “new in-app music player for Spotify users could further incentivize Shazam’s 100 million monthly users to sign up for $10-a-month streaming subscriptions.”