So it turns out that Shazam is generating a ton of music sales, according to stats just shared by the company. That is, $300 million worth of digital download sales a year, generated immediately after song recognitions. And those are just the sales that can be directly tracked.
This is arguably one of the most impulse-perfect moments for fans, and it’s working. Here’s the figure as presented Thursday by Shazam executive vice president David Jones during a detailed presentation at NARM.
Jones confirmed to Digital Music News that this is an annual, gross figure on digital downloads only, with Shazam’s referral cut amounting to something substantial. “We get a single-digit percentage revenue share on that,” Jones relayed. “Thankfully with that number, it adds up to a revenue stream that helps pay the bills.”
So let’s do some math: according to recently-released, worldwide figures from industry trade group IFPI, digital recording sales topped $5.798 billion in 2012. Of that, 71 percent came from downloads (or $4.117 billion). Which means, Shazam is responsible for at least 7.2 percent of those sales, or roughly 1 out of every 14 downloads. Throw competitor SoundHound into the mix, and all that geeky recognition is now a best friend to artists and labels.
But wait: Jones further disclosed that this sales figure is doubling every year. “That’s growing triple digits, so it’s going to be double that every year,” Jones relayed. “It’s certainly been double over the last several years.”