How to tailor your music application for users? Is the partnership between Shazam and Warner music a good idea?
Is it a strategic collaboration? Are there any risks involved with collaborating with indirect competitors? The answer in this article!
The American record label Warner Music is in partnership with the music application Shazam which can recognize what music you are listening to. This association will permit the discovery and signing of new artists.
The famous application Shazam recognizes all songs that are “tagged” by users. In a few seconds, this music application identifies the song’s artist and title. It is also possible to directly buy music using Shazam. Moreover, there are 420 million users in 200 countries. The objective of Warner music is to gain the data collected by Shazam. With this information, Warner music spots new artists, with large potential, who haven’t recorded yet. Warner then contacts artists and offers them contracts. Overall, Warner’s aim is to be avant-garde and find artists with talent in the music industry. Warner has revamped its image and now successfully promotes artists who have little notoriety. In this way, Warner music tries keep up with technological advancements in order to ensure that the talents of artists are recognised. Information provided by Shazam may be the beginning of the solution.
And what is the advantage for Shazam?
Effectively, Warner stocks the principal data of the application. So, why is Shazam accepting this deal? Because Warner creates a Shazam-branded label. This means that artists discovered by Shazam are signed to the Shazam label.
Shazam quickly identifies a lot of sound around the world. It allows people to find out what music is playing in places liked bars, shopping centres, on the radio, etc. This firm was developed fast, and can also recognize movies and TV shows. The Shazam application has several technological capacities. However, the music application can identify 500 million songs per month, or 16 million per day on the world! This British enterprise has a large database with 35 million music references and 1 million new titles are added every month! Moreover, Shazam employs “just” 10 people approximately who travel to concert halls around the world in order to find out the latest artists and musical trends. This search is pushed to the extreme in order to satisfy users.
We can reveal one risk for this partnership with Warner. All subscribers that learn the news, can be dissatisfied, because Shazam clearly usethis data for marketing purposes. Aren’t Shazam users disappointed that the aim of this partnership purely lies in marketing? Moreover, there are rival applications that offer similar services to Shazam that users can also use to discover music.
The mutual advantage is the division of the profit made by the music produced.
Warner and Shazam have been working together on marketing for several years.
The director of Warner says that Shazam is the brand of musical discovery for fans. This is a successful formula which combines data crowd-sourcing and music.
Otherwise, the main competitor is Universal Music, which recognises the importance of technology and label. This record creates its own music label on YouTube. Spotify is also becoming an important rival to Shazam and Warner and it now offers streaming services.
This partnership is undoubtedly positive, but each firm must act on what they learn from the recruitment of small talents in order to invest more money and attention on potential emerging groups.
Nowadays, music is “mobile”; people who like to listen music everywhere and in different places. It’s important for the music industry to understand and invest in the link between technology and users and the need to satisfy customers.