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Shazam Works Its Magic

By STEVE MCCLURE
Publication: Billboard
Date: Saturday, August 21 2004
London-based audio technology firm Shazam has launched its music-recognition technology in Japan.

Shazam introduced the technology July 13 as the MTV Music Finder service, in a deal struck with its Sapporo, Japan-based local licensee, SystemK; MTV Japan; and MTV Japan's

mobile-services partner, Yamaha.

SystemK took Shazam's technology/software and developed a business model that was appropriate for Japan, SystemK director of international business development Toshiaki Takeuchi says. "We needed to re-invent their business model for Japan," he says.

Shazam has a presence in 12 other countries. The company claims its service is the first of its kind in Japan.

Users of the MTV Music Finder can identify individual songs from Shazam's database of some 2.2 million tracks by dialing a four-digit code on their handset and holding it up to the speaker of their music source while the song they want to identify is playing. An e-mail is sent to the phone identifying the artist and song.

Takeuchi says MTV Music Finder is initially available to most of Vodafone Japan's 15 million subscribers. Shazam CEO Jerry Roest says the company hopes to make the MTV-branded service available through other local mobile operators soon.

"Japan has been a strategically important country from the beginning," he adds, "and we have spent a lot of time on the ground understanding the market's needs."

There are an estimated 70 million mobile-phone subscribers in Japan.

Shazam's entry into the Japanese market signifies the first time it has launched a subscription-based service and is its first alliance with MTV. "The MTV connection is crucially important," Roest says.

However, the MTV deal is nonexclusive, and SystemK will seek other partners to help Shazam expand its presence in Japan.

MTV Japan is a joint venture between MTV Networks and local investment firm H&Q Asia Pacific. It is headed by managing director/GM Yu Sasamoto. The broadcaster went with Shazam "based on [its] successful services in the U.K. and Europe," Sasamoto says. "Shazam wanted a partner with a credible brand, creating a win-win situation."

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