Shazam lands $40m from Am茅rica M贸vil to develop its TV ad business and grow in Latin America

Shazam lands $40m from Am茅rica M贸vil to develop its TV ad business and grow in Latin America

Music discovery service Shazam has announced that it landed $40 million from Am茅rica M贸vil, in a deal that will also see its app bundled onto some phones sold by the telecom giant in Latin America.

The money from Am茅rica M贸vil聽鈥 which is owned by Carlos Slim, one of the world鈥檚 richest men 鈥 will be used to further the startup鈥檚 TV service that helps broadcast advertisers connect with smartphone-owning viewers on mobile.

UK-based Shazam says its user base has risen to 350 million worldwide, up from聽300 million in February, of which 70 million are active every month.聽The alliance with the world鈥檚 fourth-largest operator, which serves 聽more than 240 million mobile subscribers across 18 countries, will help further widen Shazam鈥檚 install-base.

Best known for mobile apps for Android, iOS, Windows Phone and more, Shazam allows users to quickly identify snippets of music in order to locate, buy or listen to the full track. However, it is also making a push for content advertising with Shazam for TV. The service allows TV advertisers to link up the app to adverts, meaning that viewers are directed to their website on their phone when the Shazam app recognizes the advert.

To date, the company鈥檚 advertising service has been used by聽Unilever, Procter and Gamble and American Express, among others, in North America. It has also worked with聽American Idol聽and聽British broadcaster ITV to let viewers snap up products they like during ad breaks, using nothing but their smartphone and the Shazam mobile app.

Andrew Fisher, executive chairman of Shazam,聽tells Reuters that its revenue from the TV business will become its largest source of income within 18 months, while he says it is 鈥渞ealistic鈥 that the firm could list within two years.

For now, Reuters reports that Shazam 鈥済enerates tens of millions of dollars in revenue from the TV side鈥, and the company itself says sales of digital goods via affiliates is at $300 million per year 鈥 a figure it says is 鈥渄oubling annually鈥.

Shazam opened an APAC office based out of Australia earlier this year, and with American Movil on board the company is poised to make a big push into Latin America, a market where smartphones are driving an increase in Internet adoption.

Image via Thinkstock

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