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Sat, Nov 21, 2009 - 02:53 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Shazam debuts US$5 iPhone app, limits free version to 5 song tags per month
Monday, November 09, 2009 - 01:12 PM EST

"The makers of Shazam, the hugely popular song-identifier for the iPhone, launched a $5 premium version Monday and said future versions of its free app will be limited to five song identifications a month," Niraj Sheth reports for The Wall Street Journal.

Shazam, which names songs by listening to a clip that’s playing on the radio or stereo, is one of the most popular cellphone applications to date — and one of the rare few to turn a profit. It’s been downloaded more than 10 million times and has sold out its inventory of advertising space, according to maker Shazam Entertainment," Sheth reports.

"Shazam had hoped that mobile advertising and iTunes downloads would sustain the free app, but with the recession, that has not happened," Sheth reports.

"Existing Shazam users, however, can keep using their free, unlimited versions," Sheth reports.

Full article here.

MacDailyNews Take: We were going to say, "Looks like we'll be using Midomi more often," but we're happy to see that existing Shazam users, however, can keep using their free, unlimited versions. We were going to recommend Midomi as a possible alternative, but then we checked and that formerly-free app is now going for $4.99, too.

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Nov 09, 09 - 01:15 pm Comment from: Wandering Joe

The first fix is always free....

Nov 09, 09 - 01:18 pm Comment from: JadisOne

I guess the developers realized that they couldn't keep developing for free.

Nov 09, 09 - 01:21 pm Comment from: Erk

ok, now there needs to be a way in iTunes to always avoid upgrades for identified apps... course next full firmware update will probably "break" the tech behind these types of apps, so you will be forced to upgrade

booo

still... love the Shazam app

Nov 09, 09 - 01:23 pm Comment from: R2

The dam is broken.

Funny that this report comes from the Wall Street Journal, lol.

Nov 09, 09 - 01:26 pm Comment from: Tony

While free is always best, is $5 really a big deal for people who use this app more than 5 times a month? If they use it that much, it's worth paying this small amount.

Nov 09, 09 - 01:27 pm Comment from: Bizlaw

This is the start of the wave of charging for apps. I've been amazed at the number of apps which are free, obviously depending upon ad support for profit. However, put a small price on a well-done app, and it will sell.

Plus, you won't have to support a bunch of whiny freeloaders. You'll just get the occasional review claiming nothing about your app was worth $0.99.

The thing everyone has to remember is that most apps for your Mac/PC, and especially games for any platform, cost far more than apps on iTunes. Let's just hope it stays that way.

Nov 09, 09 - 01:27 pm Comment from: zmarc

I have no problem with this. It's a one-time fee for unlimited use. Cheap!

Personally, though I installed it, I've only used it a couple times. Where does one hear unidentified music any more? I haven't listened to the radio in a decade!

Nov 09, 09 - 01:29 pm Comment from: Cubert

Both Shazam and Midomi are $4.99 now?

Collusion, I say!!!

Nov 09, 09 - 01:36 pm Comment from: question

So the will raise the price on the Free app they have now to the 4.99.
And then they will release a new Shazam Lite which will have the 5 times limit.

So i see it.
Otherwise i don't know how they will differ between the new users and the old users who can keep the unlimited tries.

Nov 09, 09 - 01:55 pm Comment from: NCIceman

IMO it's worth it, this app is one of the most amazing things I demo on my iPhone. I am still looking for a decent desktop equivalent. I will say, I would like to see some features or accuracy added for the 4.99.

Nov 09, 09 - 02:14 pm Comment from: jjjj

wait, if they have sold out inventory, they they have priced it too low! Don't blame the recession - Shazam is GREEDY.

Nov 09, 09 - 02:30 pm Comment from: wiredzen

@ jjjj (and anyone else who thinks everything should be free)

How is $5 greedy? Do you like to get paid for the work you do or do you work for free? If you work for free then I am hiring. All the whining about app store prices is pathetic and it's beginning to drive me (and others I am sure) crazy. 99% of the apps are not expensive. Complaining about a dollar or 5 dollars... really? If that is expensive to you, then why the heck did you buy an iPhone?

Nov 09, 09 - 02:38 pm Comment from: TigerCliff

I expect this is a trend. We'll see (valuable) apps going from free or really cheap (0.99-1.99) to some price that allows them to keep their doors open. Eventually, people have to eat.

Also, I'm sure mobile advertising's effectiveness has steadily declined... just like browser ads ... stark decline in click-through rates... that's why we have these annoying more obtrusive ads.

For me, Shazam is pretty cool, but I've used it about 5 times in the last year. And Midomi about the same. When they eventually, stop keeping the original free one up with hardware/OS requirements (it'll come), the "new" free 5 times/month one will work fine for me.

Nov 09, 09 - 02:39 pm Comment from: macslut

I don't like the idea of developers offering free apps, taking over the market and then starting to charge for them, BUT...

Shazam gets a pass to do whatever they want in my book. The app is that good, and ridiculously worth more than $5.

Also, I think Shazam is being sincere, they aren't just delivering the bits for the application. They run a service, and that service costs money. Ads and commission aren't enough, so they're realizing they need to charge. I'm ok with that, especially since the free version still gives 5 songs a month.

Nov 09, 09 - 02:49 pm Comment from: LeftCoastDude

I don't use the app more than 5 times a month, but I have to tell you I won a $10 bet because of the app. Someone was trying to convince me that the song on the radio was someone other than Evanescence. Pulled out my iPhone, fired up Shazam, won the bet.

So, I'll take $5 out of my proceeds to buy it if I must.

I really don't get you guys. You seem all right about Shazam charging $5.00 for the app, but get all indignant about the WSJ charging for an online version of the paper.

It's all about economics. If people want Shazam, they'll buy it. If they love it, they'll pay more. Shazam has to figure out the best price that maximizes revenues. I'm a bit concerned that they've sold out advertising space and yet can't turn a profit.

Nov 09, 09 - 02:52 pm Comment from: ecrabb

I don't know... Shazam is great and all, but FIVE bucks? How do you go from FREE to FIVE dollars??!?!

The fact that they've sold out all their advertising inventory tells me that THAT'S what is too cheap. Perhaps they could bump the price on their advertising to better optimize revenue, while instituting a more reasonable price on the app to the end user - say a dollar or two.

Shazam is extremely cool - for free. But, there's no way I'd spend $5 for it. I just took an informal poll in the officer, and nobody else here will spend $5 for it, either.

Raising the price on the app and limiting tagging is a double-edged sword, as it will reduce the number of tags and active viewers, which reduces the value of the product you're selling to advertisers.

If I'm right, Shazam will be discounted back to a more reasonable $1.99 by Christmas when they see how few sales they're getting.

Nov 09, 09 - 02:55 pm Comment from: Saldin

Why the commotion? Midomi is way better than Shazam. Like, way way way way better.

Nov 09, 09 - 03:11 pm Comment from: Peter

Fortunately, Shazam for Android continues to be free.

Nov 09, 09 - 03:15 pm Comment from: iPhoner

Note to self:
Don't update Shazam.

Nov 09, 09 - 03:18 pm Comment from: alansky

"Shazam is extremely cool - for free. But, there's no way I'd spend $5 for it. I just took an informal poll in the officer, and nobody else here will spend $5 for it, either." —ecrabb

This post perfectly illustrates the juvenile, unrealistic atttitude that has descended on the iPhone app marketplace like a plague. If app developers can't make a living designing cool apps for the iPhone, then take three guesses at what will eventually happen. Children should not be dictating the ground rules for a space-age, cutting-edge enterprise like the iPhone App Store.

Nov 09, 09 - 03:26 pm Comment from: shen

i don't think i use it more than 3 times a month, but it is well worth $5 even at that usage rate. serious software should be supported. i already buy songs on my phone through shazam when i can even if i don't need to so they can get some money for their work. shame other ppl don't seem to see it that way.....

i will likely upgrade it when they start charging just to support them. hell that is cheaper than overpriced coffee!

....as for the WSJ, if they had $5 worth of content all year it would be different, but they don't.

Nov 09, 09 - 03:52 pm Comment from: Dan The Photo Man

Shazam is worth $5. Over 90% of the songs I tag have found a match. I listen to an adult alternative station in St. Louis and Midomi has NEVER been able to match one song!

Nov 09, 09 - 04:36 pm Comment from: whatever4real

Thats so funny. You're mad at us because we don't want to pay 5 dollars for an app that should be free. It is ad supported. Now we are seeing people charge for apps like CNN and still keep the ads. That is double dipping and unfair. I am boycotting paid apps that are just novelties. Do I really need Shazaam, NO! I didn't really care who made the song before Apple advertised their app for them. I can certainly live without it. I will just look up news on CNN.com for free, not 2 dollars and ads.

Nov 09, 09 - 04:47 pm Comment from: joe mama

MONEY GRUBBIN TWATS

Nov 09, 09 - 05:09 pm Comment from: bobo

It does a good job for mainstream music, but terrible at more obscure stuff. The stuff you are less likely to know and want to tag... Try it for any of KCRW's morning become eclectic and you'll see what i mean. $5 for an app that can't identoify 50% of the music i tag, no way. It is cool when it works though

Nov 09, 09 - 06:07 pm Comment from: Cheap Bastard

I will not pay $5 bucks for Shazam. Really, was it that cool?

Nov 09, 09 - 06:46 pm Comment from: TheConfuzed1

So the current version that I have now will always continue with unlimted use, or will it turn on the meter if I ever upgrade the app in the future?

Nov 09, 09 - 07:30 pm Comment from: Sam

Midomi has always been my favorite and will continue to be. They switched to paid version for almost a year now...MacDaily do your research! Not to mention Shazam gets their music info from another company right? You pay Shazam for this app and they don't even do it themselves! At least midomi and MusicID is legit.

Nov 10, 09 - 12:28 am Comment from: Wade Smith

I have it, used it, oh, maybe twice- didn't see much use for it. Most of the music I do listen too it will not recognize.

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