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App revenue tops $39 billion in first half of 2019, up 15% from first half of last year – TechCrunch

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App store spending is continuing to grow, although not as quickly as in years past. According to a new report from Sensor Tower, the iOS App Store and Google Play combined brought in $39.7 billion in worldwide app revenue in the first half of 2019 — that’s up 15.4% over the $34.4 billion seen during the first half of last year. However, at that time, the $34.4 billion was a 27.8% increase from 2017’s numbers, then a combined $26.9 billion across both stores.

Apple’s App Store continues to massively outpace Google Play on consumer spending, the report also found.

In the first half of 2019, global consumers spent $25.5 billion on the iOS App Store, up 13.2% year-over-year from the $22.6 billion spent in the first half of 2018. Last year, the growth in consumer spending was 26.8%, for comparison’s sake.

Still, Apple’s estimated $25.5 billion in the first half of 2019 is 80% higher than Google Play’s estimated gross revenue of $14.2 billion — the latter a 19.6% increase from the first half of 2018.

The major factor in the slowing growth is iOS in China, which contributed to the slowdown in total growth. However, Sensor Tower expects to see China returning to positive growth over the next 12 months, we’re told.

To a smaller extent, the downturn could be attributed to changes with one of the top-earning apps across both app stores: Netflix.

Last year, Netflix dropped in-app subscription sign-ups for Android users. Then, at the end of December 2018, it did so for iOS users, too. That doesn’t immediately drop its revenue to zero, of course — it will continue to generate revenue from existing subscribers. But the number will decline, especially as Netflix expands globally without an in-app purchase option, and as lapsed subscribers return to renew online with Netflix directly.

In the first half of 2019, Netflix was the second highest earning non-game app with consumer spending of $339 million, Sensor Tower estimates, down from $459 million in the first half of 2018. (We should point out the firm bases its estimates on a 70/30 split between Netflix and Apple’s App Store that drops to 85/15 after the first year. To account for the mix of old and new subscribers, Sensor Tower factors in a 25% cut. But Daring Fireball’s John Gruber claims Netflix had a special relationship with Apple where it had an 85/15 cut from year one.)

In any event, Netflix’s contribution to the app stores’ revenue is on the decline.

In the first half of last year, Netflix had been the No. 1 non-game app for revenue. This year, that spot went to Tinder, which pulled in an estimated $497 million across the iOS App Store and Google Play, combined. That’s up 32% over the first half of 2018.

But Tinder’s dominance could be a trend that doesn’t last.

According to recent data from eMarketer, dating app audiences have been growing slower than expected, causing the analyst firm to revise its user estimates downward. It now expects that 25.1 million U.S. adults will use a dating app monthly this year, down from its previous forecast of 25.4 million. It also expects that only 21% of U.S. single adults will use a dating app at all in 2019, and that will only grow to 23% by 2023.

That means Tinder’s time at the top could be overrun by newcomers in later months, especially as new streaming services get off the ground (assuming they offer in-app subscriptions); if TikTok starts taking monetization seriously; or if any other large apps from China find global audiences outside of China’s third-party app stores.

For example, Tencent Video grossed $278 million globally in the first half of 2019, outside of the third-party Chinese Android app stores. That made it the third-largest non-game app by revenue. And Chinese video platform iQIYI and YouTube were the No. 4 and No. 5 top-grossing apps, respectively.

Meanwhile, iOS app installs actually declined in the first half of the year, following the first quarter that saw a decline in downloads, Q1 2019, attributed to the downturn in China.

The App Store in the first half of 2019 accounted for 14.8 billion of the total 56.7 billion app installs.

Google Play installs in the first half of the year grew 16.4% to 41.9 billion, or about 2.8 times greater than the iOS volume.

1h 2019 app downloads worldwide

The most downloaded apps in the first half of 2019 were the same as before: WhatsApp, Messenger and Facebook led the top charts. But TikTok inched ahead of Instagram for the No. 4 spot, and it saw its installs grow around 28% to nearly 344 million worldwide.

In terms of mobile gaming specifically, spending was up 11.3% year-over-year in the first half of 2019, reaching $29.6 billion across the iOS App Store and Google Play. Thanks to the fallout of the game licensing freeze in China, App Store revenue growth for games was at $17.6 billion, or 7.8% year-over-year growth. Google Play game spending grew by 16.8% to $12 billion.

The top-grossing games, in order, were Tencent’s Honor of Kings, Fate/Grand Order, Monster Strike, Candy Crush Saga and PUBG Mobile.

1h 2019 game revenue worldwide

Meanwhile, the most downloaded games were Color Bump 3D, Garena Free Fire and PUBG Mobile.

Image credits: Sensor Tower

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Hackers release a new jailbreak tool for almost every iPhone – TechCrunch

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An iPhone hacking team has released a new jailbreak tool for almost every iPhone, including the most recent models, by using the same vulnerability that Apple last month said was under active attack by hackers.

The Unc0ver team released its latest jailbreak this weekend, and says it works on iOS 11 (iPhone 5s and later) to iOS 14.3, which Apple released in December.

Jailbreaking is a cat-and-mouse game between security researchers who want greater control and customizations over their phones, and Apple, which says it locks down iPhones for security. Hackers build jailbreak tools by finding and exploiting vulnerabilities that can lift some of the restrictions that Apple puts in place, like installing apps outside of its app store, which most Android users are already used to.

In a tweet, the jailbreak group said it used its “own exploit” for CVE-2021-1782, a kernel vulnerability that Apple said was one of three flaws that “may have been actively exploited” by hackers. By targeting the kernel, the hackers are able to get deep hooks into the underlying operating system.

Apple fixed the vulnerability in iOS 14.4, released last month, which also prevents the jailbreak from working on later versions. It was a rare admission that the iPhone was under active attack by hackers, but the company declined to say who the hackers were and who they were targeting. Apple also granted anonymity to the researcher who submitted the bug.

The group’s last jailbreak, which supported iPhones running iOS 11 to iOS 13.5, was fixed in a matter of days last year. Apple works quickly to understand and fix the vulnerabilities found by jailbreak groups, since these same vulnerabilities can be exploited maliciously.

Security experts generally advise iPhone users against jailbreaking because it makes the device more vulnerable to attacks. And while keeping your phone up to date may introduce security fixes that remove the jailbreak, it’s one of the best ways of keeping your device secure.


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Cappuccino lets you share short, intimate audio stories with your friends – TechCrunch

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You might call Cappuccino the anti-Clubhouse, but the company has been iterating on its app concept for a couple of years — its CEO doesn’t have any strong opinions on Clubhouse. And it’s true that Cappuccino is an interesting social app on its own. It has been attracting a loyal user base, especially after a TikTok video went viral.

The startup says it is building an app that helps you record podcasts with friends. Many people have discovered podcasts over the past few years. Podcasts let you subscribe to audio shows and listen to episodes on demand.

At first, people subscribe to podcasts because of their interests. But if you talk about podcasts with your friends, they’ll tell you that they like a show in particular because of the personalities of the hosts.

Listening to a podcast is a content consumption experience that feels like nothing else out there. You might watch all videos released by a particular YouTuber and you might think you know a lot about someone’s personal life by following them on Instagram.

But listening to someone for hours at a time with earbuds in your ears is a very intimate experience. When a podcast works, it feels like you’re sitting in a room with a few friends and just listening to what they have to say.

And yet, chances are your favorite podcast hosts are not your friends.

This is where Cappuccino fits. The app lets you create groups with your friends or your families. Members of the group can record a short audio message — a bean, as the startup calls it. They talk about what’s on their mind for a couple of minutes. The next morning, group members receive a notification saying that your morning cappuccino has been brewed.

When you hit play, a chill intro music starts playing followed by audio messages from your friends. It isn’t just a succession of voice memos — it feels like a relaxing mix of happy, funny, caring, thoughtful messages from your friends.

While Cappuccino is a social app, it is focused on your close friends and your family. You aren’t trying to get more followers and you are not sharing public posts. Everything is private by design and focused on groups of real-life friends.

In many ways, it reminds me of Snapchat’s group stories. But Snapchat wasn’t the main inspiration for Cappuccino — it was podcasting.

Image Credits: Cappuccino

Prototype early, iterate often

I talked with the company’s co-founder and CEO Gilles Poupardin about the origin story of the app. Cappuccino isn’t Poupardin’s first startup. He had worked on Whyd for several years and lived the full startup experience — he raised founding rounds, chose to pivot, attended Y Combinator in San Francisco, parted ways with his company’s CTO and chose to shutter the startup.

Among other things, Whyd worked on a voice-controlled connected speaker before Amazon’s Echo product lineup and Google’s Nest speakers really took off. It’s hard to compete with tech giants, even harder when you’re competing on the hardware front.

After that, the Whyd team worked on a service that lets you create your own voice assistant. That didn’t really take off as expected either.

During the summer of 2019, Olivier Desmoulin reached out to Poupardin. Back then, Desmoulin was heading design for Jumbo, an app that helps you stay on top of your online privacy.

“At the time, I didn’t know if I wanted to start a company again — I pivoted 15 times [with Whyd],” Poupardin told me.

But they started discussing about podcasts and AirPods — and audio at large — as the next frontier for social apps. The basic premise was simple. A lot of people were listening to podcasts, but very few people were creating their own podcasts.

There are three reasons why your neighbor doesn’t have its own podcast but sometimes posts stuff on Instagram and Snapchat:

  • Podcasts are long-form content
  • It’s technically complicated to record and release a podcast
  • You are trying to attract an audience of people who don’t know you.

With Cappuccino, the idea is to take a reverse stance on these three points: short content, easy to record and personal. It’s supposed to be a better experience for both people recording audio and people listening to audio.

The first version of Cappuccino isn’t an app, it’s a side project. “We created a group on WhatsApp, we invited 10 to 15 people and we asked them to record voice memos and send them all to Olivier,” Poupardin told me.

Every night, Olivier Desmoulin would fire up GarageBand and create a mix of all voice memos. In the morning, he would send a message to the group conversation on WhatsApp and write: “Hey, your cappuccino is here.”

Image Credits: Cappuccino

After getting some positive feedback from group members, Pouparding and Desmoulin chose to move forward and create something that feels more like an app. But they both knew that creating a social app was incredibly hard when it comes to attracting users. They developed something quickly so that they weren’t wasting time developing something that nobody would use.

“We built the first version of the app in four days by using a hack — we were using Airtable as the backend service,” Poupardin said.

Once again, feedback from beta users was pretty good. They showed the app to some investors and ended up raising $1.2 million from Alexia Bonatsos (Dream Machine, also a former TechCrunch editor), SV Angel, Kevin Carter (Night Capital), Niv Shrug Capital, Jean de La Rochebrochard (Kima Ventures), Kevin Kuipers, Willy Braun, Marie Ekeland, Solomon Hykes (founder of Docker), Pierre Valade (founder of Sunrise and Jumbo Privacy), Moshe Lifschitz (Basement Fund), Anthony Marnell, Bryan Kim and a bunch of others.

Gawen Arab who was the CTO at Whyd teamed up once again with Poupardin, proving that time is a flat circle. He’s now co-founder and CTO at Cappuccino.

Image Credits: Cappuccino

Letting people talk about you

The Cappuccino team hasn’t been active when it comes to press relations or ads. It’s been a slow build up with some interesting spikes.

Last summer, Product Hunt super user Chris Messina created a post about Cappuccino. It was a bit of a surprise as the startup wasn’t trying to get featured on Product Hunt. Still, the co-founders diligently answered questions from the Product Hunt community.

The following day, Product Hunt’s newsletter featured Cappuccino. It was titled “The next big audio social network?” That brought some new users to the app.

Image Credits: Cappuccino

But things really started to take off when Brittany Kay Collier shared a video on TikTok about Cappuccino a few weeks ago. She sent a direct message to Poupardin on Instagram, telling him that it was attracting a lot of views. The video ended up attracting around 3.8 million views and 850,000 likes.

Two days later, Poupardin sent her a job offer to join the team. He was secretly hoping she would say yes, and she was secretly dreaming about getting a job at a company like Cappuccino.

Over the past couple of weeks, Cappuccino attracted 225,000 new users. They created 130,000 groups and sent around one million audio stories.

When the team is reading public posts about Cappuccino on Twitter, it feels like the app has found its core user base. The most loyal users seem to be young women in their twenties. They want to keep in touch with long-distance best friends.

They might be graduating from college and moving to a different part of the country. They might be stuck at home because of the current pandemic.

And it seems like new users have no issue hitting the record button and telling stories — everybody is familiar with voice messages on WhatsApp and iMessage after all.

“Something that is interesting with audio messages as a medium is that you tell different stories from what you would tell by taking a photo for Instagram, sending a Snap or creating a video on TikTok,” Poupardin said.

But what about the elephant in the room then? Clubhouse has topped 8 million downloads already. Poupardin listed all the differences in social graph, audio format and user base. According to him, there’s enough room for multiple audio apps.

“With video, you have YouTube, Twitch and TikTok — those are all different formats. Audio is potentially going to follow the same trend,” Poupardin said. Social apps first took advantage of the camera in your smartphone, because the camera was the killer hardware feature. And audio seems like the natural next step.

He feels like he isn’t competing with other audio startups for now. He wants people to wake up and listen to Cappuccino instead of random music on Spotify. “It’s going to help people who feel lonely,” he said.

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Instagram launches ‘Live Rooms’ for live broadcasts with up to four creators – TechCrunch

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Instagram today announced it’s adding a much-requested feature to its app with the launch of “Live Rooms,” which allow up to four people to broadcast live together at the same time. Previously, the app only allowed users to live stream with one other person, similar to Facebook Live. The company says it hopes Live Rooms will open up more creative opportunities in terms of live broadcast formats to allow for things like live talk shows, expanded Q&A’s or interviews, jam sessions for musicians, live shopping experiences, and more.

In addition to the ability to live stream with more people, Instagram also touts how the new feature can help creators to make more money. Last year, in the early days of the COVID-19 crisis, Instagram introduced badges as a way for fans to support their favorite creators during a live video. Once purchased, the badges appear next to a fan’s name throughout the live video, helping them to stand out in the comments and unlock other special features, like placement on the creator’s list of badge holders and access to a special heart.

Badges became more broadly available last fall, at three price points: $0.99, $1.99, or $4.99.

With Live Rooms, fans can buy badges to support the hosts (one badge per person) as well as use other interactive features like Shopping and Live Fundraisers. The company says it’s also now developing other tools, like moderator controls and audio features that will roll out in the months to come.

To start a Live Room, you’ll swipe left and select the Live camera option, then title the Room and tap the Room icon to add guests. Here, you’ll see a list of people who’ve already requested to go live with you and you’ll be able to search for other guests to add.

Image Credits: Instagram

When you start the Live Room, you’ll remain at the top of the screen while guests are added. The guests can be added all at once or individually, depending on your preference. This allows for opportunities to add “surprise guests” to live streams to keep fans engaged.

The ability to add more guests to a live stream can also help a creator grow their follower base, as all the guests’ followers are notified about the Live Room, in addition to your own.

For safety reasons, any person that’s been blocked by any of the Live Room participants will not have access to join the live stream. Plus, any guests who have previously had their live access revoked due to violations of Instagram’s Community Guidelines won’t be able to join any Live Rooms.

During live broadcasts, the hosts can also report and block comments and use comment filters to maintain a safer experience for all viewers.

Live broadcasts became an increasingly important way for creators, business owners and brands to stay connected with followers during the pandemic, which shut down in-person live events, including concerts, shows, classes, conferences, meetups, and more. Instagram reported a 70% increase in Live views from February to March, for instance, as creators and businesses shifted their work online.

Image Credits: Instagram

As the pandemic wore on throughout 2020 and into 2021, the lack of in-person connection has allowed for other opportunities and even new social networks to grow. Live audio platform Clubhouse, for example, has seen rapid adoption, particularly by the tech and creative crowds, who today use the app to tune into live shows, chat sessions, and even big-name interviews. Twitter is now building a rival, and reportedly, so is Facebook.

But while Clubhouse offers a very different experience, it still operates in the same broader space of allowing fans to connect with high-profile individuals of some sort — entrepreneurs and founders, celebrities, market experts, thought leaders, influencers, and so on. And because users’ time is limited, seeing this type of activity shift to non-Facebook owned platforms is likely of concern to Instagram and its parent.

Meanwhile, in the live video broadcasting space, Instagram today faces a number of competitors, from those focused on a particular niche — like game streaming site Twitch, live shopping apps, and more— as well as general purpose live platforms offered by YouTube and TikTok. (The latter was spotted offering a four-up live stream format just last month, in fact.)

Instagram says Live Rooms are rolling out now to both iOS and Android to all global markets. The company expects the rollout to reach 100% of its user base within the week.

 

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