In the online music world, there is a trail of dead companies. But, some have somehow found ways to not only survive -- but thrive. One is Shazam, which builds applications for mobile phones. This week, the firm hit 50 million users. And, it was also able to secure venture funding from the premier VC firm, Kleiner Perkins (the other investors include Acacia Venture Partners and DN Capital). The amount was not disclosed.
What explains the success of Shazam? First of all, the company has cool technology that lets your phone hear a song and then it will figure out its name as well as the artist.
What explains the success of Shazam? First of all, the company has cool technology that lets your phone hear a song and then it will figure out its name as well as the artist.
Next, Shazam is wildly successful on Apple's (Nasdaq: AAPL) iPhone. So far, users have downloaded roughly 10 million copies.
To monetize things, Shazam plans to offer a premium version (on a subscription basis). True, this can be difficult to pull off. But then again, the company has a sizeable user base.
Also, Shazam is already cash flow positive. Some of the revenue streams include: mobile advertising, sales on iTunes and premium versions on phones from RIM (Nasdaq: RIMM) and Nokia (NYSE: NOK).
Tom Taulli is the author of various books, including The Complete M&A Handbook
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