Shazam is now limiting the amount of free recognitions that users can enjoy, a move designed to force premium upgrades. Specifically, the latest 1.8.5 upgrade limits the user to 5 tags per month on the free app*.
Raw deal? The move is certainly understandable from a revenue standpoint, though the question now is whether this approach will generate more upgrades, or simply alienate existing users. Indeed, the ongoing case study is the latest in a treacherous game called ‘freemium,’ though Shazam is playing on a platform that does have paying customers. Currently, the Encore premium app is among the top-grossing downloads on the iPhone and iPod touch.
The early reaction on the free limitation is overwhelmingly negative, at least among early-adopters, and the iTunes Store features a long string of rants. “Ever since the paid app came out, the free app has gotten worse and worse,” one of the more benign users posted, while ranting about “the limit [of] five tags a month,” and “the stupid wannabe bait-and-switch”.
Others expressed displeasure over the price of the upgrade. Instead of $4.99 – an aggressive price-point on the App Store – users seemed more willing to entertain a 99-cent tag. “I ‘might’ pay .99, but come on 5 bucks???? Ridiculous!!!!” another blurted.
Perhaps some price adjustments are necessary, though Shazam is undoubtedly doing the math. And for now, Shazam appears to be focusing a lot more energy on its premium app development. On Thursday morning, the company announced an integrated tie-in with Last.fm, available only on paid versions (as first tipped by Digital Music News).
*In morning testing from the US (AT&T connection), Digital Music News was able to receive more than 5 tags using the latest free version, suggesting an ongoing rollout (a representative for Shazam has not yet returned an inquiry).
