Facebook Prepping New App for Video Creators (Jun 23, 2017)
Microsoft Unifies its Minecraft Apps (Jun 12, 2017)
Alongside its Xbox One X announcement, one other big announcement Microsoft made at E3 is a unification of its Minecraft apps, such that several major versions will now be interoperable and available for social play between different platforms. Interestingly, the original PC version of the game is the one that will be left out from all this interoperability, but the mobile, Xbox, and VR, and even Nintendo Switch will all get it as a free upgrade to the current version. And in-game purchases (DLC) will also be available on each version. In many ways, it’s a quirk of the way the Minecraft apps have developed that they haven’t had this compatibility in the past – surely, many kids (and adults) have wanted to play these games on all their devices all along, and have had to make do with different incompatible versions instead. So this is at least a logical step, though the exclusion of the original PC version still feels a little odd.
Instagram Launches Selfie Filters (May 16, 2017)
Amazon Announces Alexa Notifications for Apps Coming Soon (May 16, 2017)
Amazon has announced on its developer blog for Alexa that notifications will soon be coming to the platform for Skills (apps) developers which want to proactively serve up information to users (Amazon will also use the platform to deliver updates for Amazon.com orders). This is both an interesting new opportunity for Amazon and Alexa and a potential minefield. On the one hand, every developer wants to proactively re-connect with users rather than merely passively wait for users to re-engage on their own, especially on a voice-only device where there’s no visual prompt or reminder that the app even exists. But on the other, that could lead to fairly spammy behavior from some apps akin to what we already see from some smartphone apps – notifications are a Pandora’s box of possibilities which have many legitimate uses but are also often abused and quickly get out of control. It will have to be very clear to users how they turn these notifications on and off, how many they receive and what for, and so on, something that’s going to be a little tougher to manage on a voice-only device than on a smartphone. It’ll arguably be the best fit on the Echo Show, where users can interact with and control the notifications a little more easily. Both Amazon and its developers will want to tread very carefully in rolling this out.
Snap, owner of the Snapchat app, today reported its first earnings as a public company, and it was a somewhat unique experience. Its press release, linked below, is entirely devoid of commentary, and although its call had a little more of that in prepared remarks, it was mostly focused on its evolving ad products. The results themselves are more of the same from the S-1 filing, which I suggested at the time was lousy preparation for an IPO because it featured significantly slowing user growth and a lack of clarity about the future. This first quarter of public earnings reinforces that perception, with more slower growth than last year. Massive stock-based compensation related to the IPO dramatically distorts the margin picture, but even stripping out SBC leaves a worsening margin picture as costs in several categories rose faster than revenue. Evan Spiegel and the other executives on the call seemed keener to talk trash about competitors, notably Facebook, than in really answering investors’ pressing questions about user growth, and that’s reflected in the stock price, which has dived since the release. The bombastic tone would have been justifiable if the company’s growth hadn’t slowed significantly since the introduction of Instagram Stories with no signs of recovery, but in the current context it feels like naivety or denial instead. Snap’s management argues that measures of engagement and “creation” are more important than user growth metrics. However, it provides very few of those, and then not consistently or with enough granularity to measure them over time. The conclusion from all of this is that Snap’s future is that of a niche company dominating narrow segments of the population rather than a company with broad mass market appeal, and that has significant implications for its valuation. Two other points worth making: the company provided enough data in today’s call to suggest it sold fewer than 100k Spectacles units since launch, confirming the perception that it’s been seen as an experiment than a meaningful new part of its business. Secondly, it continues to suggest that its sub-par Android app has hurt growth, and that recent improvements have moved the needle, though the numbers in question have moved so little that this isn’t going to turn around the growth trend.
via Snap Inc.
Instagram Launches Uploads From Mobile Web (May 8, 2017)
I’m seeing this change generally being reported as a clarification (including in the piece I link to here) but this is a change from the original wording here, which explicitly said the cut in affiliate fees announced a couple of weeks ago applied to both “app and in-app content” and didn’t include apps in the list of content types to which the change would not apply. Unless that was just really terrible wording, it does seem as though there has been a change in policy here. Applying the change just to in-app purchases again makes me wonder whether there might be some change to Apple’s cut of App Store revenue in this category, announced at WWDC in a few weeks. We don’t know quite how much of Apple’s App Store revenue comes from IAP, but games dominate total revenues, and IAP is the dominant model for games, so there’s a good chance that it’s 30% or more. As such, any cut to Apple’s share of revenues would dent overall App Store growth and Apple’s ambitions to double its overall Services revenues over four years from 2016 to 2020. So I’m somewhat skeptical, but changing the cut for IAPs would certainly go a long way to addressing the long-standing complaint from content companies like Spotify that Apple takes too much of their fees, given that those are charged through IAPs. And it would potentially open the door to Amazon’s arrival on the Apple TV too.
Amazon Video App May Finally Come to Apple TV in Q3 (May 5, 2017)
Apple Provides Better Source Insights to App Developers (May 4, 2017)
Apple has been criticized for not giving developers good enough insights on how their apps perform and especially for not allowing developers to know where new users come from. That’s now changing with an update to Apple’s analytics platform for developers, which will be particularly useful in light of the paid ads which now run in Apple’s App Store search function. Developers need to know whether those ads are being effective in gaining new users and downloads, and how they measure up relative to other lead generation methods. The incremental steps Apple has taken to expand the range of business models open to developers, to share more of the revenue with those developers, and to improve analytics over the past couple of years are all checking important boxes in the wish lists of developers and cementing the status of iOS as the platform to develop for, despite Android’s larger user numbers.