Despite numerous reports claiming that Shazam is now a ‘profitable’ company, their financial situation seems to be getting worse – not better.
Lots of online magazines and sites have been claiming this, such as The Wall Street Journal, TechCrunch, Billboard, Forbes, and the Financial Times, as well as many more.
“Shazam is finally profitable after a billion downloads,” A TechCrunch headline said.
“After 15 years, music-discovery company Shazam Entertainment Ltd. finally is turning an operating profit—but not thanks to music,” The Wall Street Journal announced without any hard numbers to back this up.
“Shazam Hits 1 Billion Downloads and Turns a Profit (Thanks to Advertising),” Billboard reported.
But, just a few days after these articles where posted, financial documents emerged showing disastrous financial losses.
These financial documents, which were filed with British regulators last week, show that Shazam posted a huge pre-tax loss of £16.52 million in 2015, or $21.1 million with current exchange rates.
The hard numbers look very worrying for Shazam and they can be found here on Shazam’s financial statement on Music Business Worldwide.
These figures put Shazam in the same category as other mega-losers like Soundcloud and Spotify.
This all seems to strike contrast with a celebratory quote from Rich Riley, who is the CEO of Shazam. “Transitioning our business model to advertising, achieving profitability and crossing one billion downloads are the result of the tremendous efforts of our team,” Riley told Billboard just days before the financial filing.
“We remain relentlessly focused on delivering magic for our users and results for our advertising partners, and couldn’t be more excited about our future.”
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