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Shazam Miles Lewis: September 2016

My deck from IGNITE 2016

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Shazam Miles Lewis: September 2016

Walk onto stage play this Nokia text alert sound.

Morning

some of you will instantly recognise that sound as that which told you there was an SMS or text to read on your mobile phone. Some of you will not have heard that sound for years or if you are lucky ever....

Now add these 4 simple numbers into the mix and you get the start of an incredible journey for company that is known today as Shazam.

Naming that tune has been the name of our game since 2000.

Predictable we are not.

Founded in 2000 we have had hundreds of millions of downloads and 20+ billion Shazams. Since walking up here we have had some 15,000 Shazams from all corners of the world.

Back then though before the mobile became smart we were a text based service

You heard a song you liked but did not know the name of you dialed 2580 from your handset, we listened and then texted you back.

But it may never have happened....

Todays smartphone user takes for granted the magic of Shazam and what their smartphone does.

Shazam was developed when mobiles were dumb and investors especially in the US were bewildered by mobile as a platform.

The first inking of the Shazam idea came from MBA students Chris Barton Philip InghelbrechtDhiraj Mukherjee in 1999.

The students took their idea Professor Julius Smith at Stanford and asked to be introduced to their best student. This was Dr Avery Wang. Dr Avery Wang looked at the challenge said thought it might not be possible. They worked on the algorithm. Some months later an excited Avery called the others with the news he had cracked it...

But the technology had to cross an ocean before if could find its legs.

The mobile networks in the US were not set up for SMSing and more strategically North American investor sentiment was very much focused on the internet whereas in Europe mobile services were more established. So London it was where investors supported us.

Another obstacle facing the fledgling company was that digital music had yet to developed into a category. iTunes did not exist. People were just getting their heads around ring tonesand even then it would be another 4 years until the Crazy Frog phenominon .So the strartgy at the time was somewhat forced by a neeed to educate people about Shazam....

At this time Shazam 2580 was an interesting use of a phone. Small usage. Not much growth. It was a tough time.

In 2003 . Shazam moved away from a direct to consumer approach to reach more people and monetize its service through relationships with carriers and manufacturers. Like AT&T in the US MusicIDVerizon in US and SongIDWhite labeled and co-branded was the strategy at the time.

It was 2007 as you can see where usage moved the graph....

By 2007 the markets were shifting in Shazams favour -

People starting to become open to buying digital contentPrices for media on mobile platforms were finally on a par with what consumers were used to paying for content in stores or onlineThe movement to a single monthly fee for data gave you more freedom to do more on your mobile. Better mobile devices with music players were hitting the shops

We were though still some way off real recognition or a real runway to where the business is today.

Then something major happened....

.....on June 29th 2007 this accelerated movement our way........

It showed people what was possible from the mobile web... It showed up the limitations of the mobile networks of course who then had to go and invest billions to support this new world....

The iPhone was not of course the defining moment... It simply laid some foundations..... The queues and 250,000 unit sales in one weekend in one country made us re-apprasise plans.... Made us think about the seisemic changes that were about to hit all of us........

It would be anohter year though ..........

(It would be another year though..... ) before Shazam had a major jolt into popular culture and on the road to be one of the biggest mobile first companies of this new order.

Looking back had Shazam stuck with the business to business white label approach the gorwth and verb-ification of our name would never have happened.. The app would not have been created and I would not be standing here now..........

July 10th 2008 Apple unveiled the app store and version 2,0 of its iPhone software 500 apps was the sum total available to you then all built on the new iOS all downloadable to the new iPhone 3G. Shazam was there

We had just 15million users at the time...

Original Apple app store Shazam ad.

This first native Shazam app opened up discovery and then one click to buy and also to share...... North America sudenly opened up to us.A few months later Apple ran a TV ad showcasing Shazam the ad changed everything.....That was the beginning of our recommitment to a fully fledged consumer strategy....

By the end of September 2008 Shazam had been downloaded more than 1.5 million times in the app store and the audience hit 20million. The next 12 months (October 08 to 09) added 30 million.

We played with a freemium model 5 Shazams a month.Then bringing on sponsors to offer users free Shazaming.

As growth exploded we removed all barriers.At the time we also developed apps for all the platforms, BlackBerry, Nokia, Android.

The essence remianed the same as we expanded...

Andorid hit in October 08BlackBerry in February 09.

. We were developing for all platforms - Remember the shear amount of change that was happening... We had to support all platforms - gambling at this time was not an option.......

With our popularity surging we set our sights on additional media beyond mobile.

Shazams plans were looking at audio at a macro level not just confined to music.

In early 2010 US viewers tuning into the SuperBowl witnessed for the first time ever a television commercial that was Shazam enabled. The ambition? To position Shazam as The Media Engagement Company.

So while this particular strategy was only kicking into gear in 2010 it was the same direct response marketing strategy discussed in the board room in 2003....

Witht his first TV ad under our belts our ambition grew.

The following year we Shazam enabled the programme and half time extravagaza.

In 2012 we partnered with NBC in the US to Shazam enable the Olympics output. One of the most simple and most engaging use cases? The medal count. One button, one touch and Shazam had it.

Over on this side of the pond we have been Shazam ebabling The Brits for 2 years. Leading some users baffled as to how we do it!

Explosive Android usage made us sit up and realise we had to offer consistency across platforms.

As Apple had kicked the entire app phenomenon off like the majority of companies at the time iOs was first and this was the case for a while.

If you moved platforms and a lot of people have and do your experience of Shazam needs to be the same with the same functionality and feel.

So our iOs and Android teams work in parallel to develop Shazam consistently.

With all this expansion and innovation one might have been forgiven if you thought we had or were ignoring the music industry.

Music is the backbone to Shazam, the very reason we exist so we contiue to invest.

Digital music sales whilst now plateauing or decreasing were on the rise in the mid noughties, the streaming players were just emerging Spotify launched in 2008 and had yet to grab the publics imagination but they would.. The music business was about to be disrupted with a capital D.We are core to discovery and re-discovery. We are core to part of the purchase journey and we are core to part of the streaming journey.

We invest in speed of recognition. Avery continues to perfect the algorithm sometimes when you think there is no way we will recognise the track and we do its because we plough time and resource into it.

We invest in our library. There is no point in having speed and accuracy if we dont have to track and give you a disappointing experience. And this is not just about the majors. We strive to not be beaten. Of course mixes and DJ mash ups created in that moment can and do challenge us We did though sign a deal with JUNO to get vinyl releases primarily used in clubs to close one gap we had...

In summary you cant sit still.... Even if your front door looks the same you have to invest, develpe and innovate. Our agile processes offer near consistent updates some minor some major througout the year.

Shazam Connect.

We call it Shazam Connect.

Connecting media to people. People to brands and brands to people.

Simply at the touch of a button.

Try it if you have Shazam on your handsets open it up now and experience one of the most effective and simple uses of our audio recognition tech

In short YES

Shazam is The Media Enagement app. Audio is a given but I bet a lot of you were unaware we trialed visual Shazam at the end of 2015? Shazam a Pizza Box? YesA Bottle of Vodka? YesA lipstick? Yes

Ill leave you with possibly the offices favourite campaign of recent times.

Pour yourself a coke.

Thank You

Did you know, the way you choose to contact someone suggests you are a digital native or a digital foreigner?

For more please drop me a note

[email protected]@Miles_Lewis_Linkedin.com/in/mileslewis+44 7814522769

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