In a move to boost family subscriptions to its app, Spotify this morning announced the launch of a dedicated Kids application which allows children three and up to listen to their own music, both online and offline, as well as explore playlists and recommendations picked by experts, and more. The music selection is also filtered so songs won’t have explicit content.
The launch is a first in the online music streaming space, where kids on parents’ music plans typically sign in through the same app — just with a different login. But Spotify believes children deserve their own space, where the music they listen to is available in an ad-free environment, where they won’t accidentally encounter lyrics that parents disapprove of, and where content is hand-curated by editors.
Spotify Kids, essentially, is a set of hand-picked playlists across categories.
The app includes categories like Movies & TV, top hits, Activities (bedtime, homework, playtime, etc.), genres, seasonal, Spotify Originals, artist/groups, and Stories.
The playlists are all programmed by human editors, not algorithms, and are chosen by way of a set of guidelines about what’s appropriate for children.
The editors, Spotify says, have backgrounds from some of the most well-known brands in the children’s entertainment business, including Nickelodeon, Disney, Discovery Kids, Universal Pictures, Public Service (Sweden), and BookBeat (a family and kids-oriented audio streaming service).
The new app isn’t just for the preschool set. Instead, it can grow with the kids as they get older — but still aren’t ready for the parents’ application yet.
In the younger kids’ version, children can listen to things like singalongs, lullabies, and soundtracks aimed at little kids. Older users have access to tracks and playlists of their own, including some popular tracks, that are appropriate and relevant for their age group. Parents will select their child’s age group upon launch.
In time, Spotify will expand the app with more content — including stories, audiobooks, and podcasts — and build enhanced parental settings and controls that allow parents to customize the Kids app further.
The new app also looks nothing like the main app — it’s colorful and bright, and has a look and feel that varies by the kids’ age group. For example, the younger kids see artwork that’s softer and character-based, while older kids have a more detailed experience.
“Spotify is committed to giving billions of fans the opportunity to enjoy and be inspired by music and stories and we’re proud that this commitment now includes the next generation of audio listeners,” said Spotify’s Chief Premium Business Officer Alex Norström. “We are excited to be expanding the Spotify Premium Family experience with a dedicated app just for our youngest fans. Spotify Kids is a personalized world bursting with sound, shape and color, where our young listeners can begin a lifelong love of music and stories.”
The launch of the Kids app follows Spotify’s surprise earnings success this week, where it beat Wall St. estimates with net income of 241 million euros ($267.34 million), or 36 cents per share. Analysts had expected a loss of 29 cents per share.
The company also added 5 million new subscribers in the quarter to reach 113 million paying premium subscribers — up 26 million from the year-ago quarter.
Today, a Spotify Premium plan costs slightly more than a regular Premium account ($14.99 vs. $9.99 in the U.S., respectively). But many parents often just share their account with the whole family — often ruining their recommendations and special features, like Spotify Wrapped, along the way. A Kids app is a good incentive to convince customers to upgrade, as it’s not only solving those problems but also giving kids a safer, more curated experience within the larger music ecosystem.
There’s another incentive for Spotify to separate out Kids’ listening into its own space: targeted advertising. While the Premium experience has typically been ad-free, a new product lets artists buy a full-screen ad about their new music release and show it to interested users, based on listening history — even if they’re Premium subscribers.
This isn’t the first move Spotify has made in recent months to better cater to families. The company this summer launched a dedicated streaming hub in partnership with Disney, where families could find favorite songs, playlists and soundtracks. It also added parental controls to Premium Family accounts soon after, and launched a special “family mix” with songs everyone can agree on.
Spotify Kids is initially available in beta, while Spotify works to refine the experience based on additional insights gained from use as well as parents‘ feedback. It requires a Premium Family plan to use.
The app is immediately available today in Ireland on iOS and Android, but is rolling out to all markets, the company says.
Mobile game spending hits record $1.7B per week in Q1 2021, up 40% from pre-pandemic levels – TechCrunch
The COVID-19 pandemic drove increased demand for mobile gaming, as consumers under lockdowns looked to online sources of entertainment, including games. But even as COVID-19 restrictions are easing up, the demand for mobile gaming isn’t slowing. According to a new report from mobile data and analytics provider App Annie in collaboration with IDC, users worldwide downloaded 30% more games in the first quarter of 2021 than in the fourth quarter of 2019, and spent a record-breaking $1.7 billion per week in mobile games in Q1 2021.
That figure is up 40% from pre-pandemic levels, the report noted.
The U.S. and Germany led other markets in terms of growth in mobile game spending year-over-year as of Q1 2021 in the North American and Western European markets, respectively. Saudi Arabia and Turkey led the growth in the rest of the world, outside the Asia-Pacific region. The latter made up around half of the mobile game spend in the quarter, App Annie said.
The growth in mobile gaming, in part accelerated by the pandemic, also sees mobile further outpacing other forms of digital games consumption. This year, mobile gaming will increase its global lead over PC and Mac gaming to 2.9x and will extend its lead over home games consoles to 3.1x.
However, this change comes at a time when the mobile and console market is continuing to merge, App Annie notes, as more mobile devices are capable of offering console-like graphics and gameplay experiences, including those with cross-platform capabilities and social gaming features.
Games with real-time online features tend to dominate the Top Grossing charts on the app stores, including things like player-vs-player and cross-play features. For example, the top grossing mobile game worldwide on iOS and Google Play in Q1 2021 was Roblox. This was followed by Genshin Impact, which just won an Apple Design Award during the Worldwide Developer Conference for its visual experience.
The report also analyzed the ad market around gaming and the growth of mobile companion apps for game consoles, including My Nintendo, Xbox Game Pass, PlayStation App, Steam, Nintendo Switch and Xbox apps. Downloads for these apps peaked under lockdowns in April 2020 in the U.S., but continue to see stronger downloads than pre-pandemic.
On the advertising front, App Annie says user sentiment toward in-game mobile ads improved in Q3 2020 compared with Q3 2019, but rewarded video ads and playable ads were preferred in the U.S.
Apple Podcasts Subscriptions go live worldwide – TechCrunch
Apple Podcasts Subscriptions are now live across more than 170 countries and regions, Apple announced this morning. First unveiled this spring, subscriptions allow listeners to unlock additional benefits for their favorite podcasts, including things like ad-free listening, early access to new episodes, bonus material, exclusives or whatever else the podcast creator believes will be something their fans will pay for. Channels allow podcasters to group their shows however they like — for instance, to highlight a set of shows with a shared theme, or to offer different mixes of free and paid content.
The new subscription features were initially set to arrive in May, but Apple later emailed creators that the launch was being pushed to June. This was likely due to a series of back-end issues impacting the service, including things like delayed episodes and malfunctioning analytics, among other things.
At launch, Apple says there are thousands of subscriptions and channels available, with more expected to arrive on a weekly basis.
When listeners purchase a subscription to a show, they’ll automatically follow the show in the redesigned Apple Podcasts app. The show’s page will also be updated with a Subscriber Edition label, so they’ll be able to more easily tell if they have access to the premium experience.
The app’s Listen Now tab will expand with new rows that provide access to paid subscriptions, including their available channels.
In the app, users can discover channels from show pages and through Search, browse through recommendations from the Listen Now and Browse tabs, and share channels with friends through Messages, Mail and other apps.
Apple’s delay to invest in the Podcasts market has given its rivals a head start on growing their own audience for podcasts. At the time of the spring announcement of subscriptions, for example, an industry report suggested that Spotify’s podcast listeners would top Apple’s for the first time in 2021.
Despite the competition, Apple is betting its massive install base will bring in creators. Those creators agree to pay Apple a 30% cut of their subscription revenue in year one, just like subscription-based iOS apps. That cut drops to 15% in year two. Spotify, by comparison, is taking no revenue cut for the next two years while its program gets off the ground. It will then take only a 5% fee.
Based on the debut lineup, it seems many creators and studios believe Apple’s footprint is worth the larger revenue share.
Early adopters of subscriptions include notable names like Lemonada Media, Luminary, Realm and Wondery; media and entertainment brands, including CNN, NPR, The Washington Post and Sony Music Entertainment.
Other studio participants include Audio Up, Betches Media, Blue Wire, Campside Media, Imperative Entertainment, Lantigua Williams & Co., Magnificent Noise, The Moth, Neon Hum Media, Three Uncanny Four, Wondery, Audacy’s Cadence13 and Ramble, Barstool Sports, Jake Brennan’s Double Elvis, Headgum, iHeartMedia’s The Black Effect, Big Money Players, Grim & Mild, Seneca Women, Shondaland, Relay FM, Tenderfoot TV, Radiotopia from PRX, Pushkin Industries, QCODE and others,
In the news category, there’s also The Athletic, Fox News, Los Angeles Times, Bloomberg Media, Politico and Vox Media, plus channels from other newspapers, magazines, broadcasters, radio stations and digital publishers, including ABC News, Axios, Billboard, Bravo, CNBC, CNN, Crooked Media, Dateline, Entertainment Weekly, Futuro Media, The Hollywood Reporter, LAist Studios, National Geographic, MSNBC, NBC News, NBC Sports, New York Magazine, The New York Times, SiriusXM, SB Nation, Southern Living, The Verge, TODAY, VICE, Vogue, Vox and WBUR.
Kids’ podcasts are also available, including those from GBH, Gen-Z Media, Pinna, Wonkybot Studios, TRAX from PRX and others.
Apple also highlighted independent creators offering subscriptions like “Birthful” with Adriana Lozada, “Pantsuit Politics” with Beth Silvers and Sarah Stewart Holland, “Snap Judgment” with Glynn Washington and “You Had Me At Black” with Martina Abrams Ilunga.
Meanwhile, international subscriptions and channels are being offered from ABC, LiSTNR and SBS from Australia; Abrace Podcasts from Brazil; CANADALAND and Frequency Podcast Network from Canada; GoLittle from Denmark; Europe 1, Louie Media, and Radio France from France; Der Spiegel, Podimo, and ZEIT ONLINE from Germany; Il Sole 24 Ore and Storielibere.fm from Italy; J-WAVE from Japan; Brainrich from Korea; libo/libo from Russia; Finyal Media from the UAE; and Broccoli Productions, The Bugle, Content Is Queen, the Guardian, Immediate Media, and Somethin’ Else from the U.K.
Subscriptions start at $0.49 U.S. per month and go up, with some popular shows priced at $2.99 per month and some channels, like Luminary, at $4.99 per month, to give you an idea of pricing. Apple Card users get a 3% cash back on their subscriptions, which can be viewed in Apple Wallet.
Once subscribed, you can listen across Apple devices, including iPhone, iPad, Mac, Apple Watch, Apple TV, CarPlay, HomePod and HomePod mini.
Subscriptions were announced alongside a redesigned version of the Apple Podcasts app, which has received a number of usability complaints and sent some users in search of third-party apps. Apple has been responding to user feedback and addressed some issues in the iOS 14.6 update with other Library tab updates planned to arrive in future releases, perhaps iOS 14.7.
UK’s CMA opens market study into Apple, Google’s mobile “duopoly” – TechCrunch
The UK’s competition watchdog will take a deep dive look into Apple and Google’s dominance of the mobile ecosystem, it said today — announcing a market study which will examine the pair’s respective smartphone platforms (iOS and Android); their app stores (App Store and Play Store); and web browsers (Safari and Chrome).
The Competition and Markets Authority (CMA) is concerned that the mobile platform giants’ “effective duopoly” in those areas might be harming consumers, it added.
The study will be wide ranging, with the watchdog concerns about the nested gateways that are created as a result of the pair’s dominance of mobile ecosystem — intermediating how consumers can access a variety of products, content and services (such as music, TV and video streaming; fitness tracking, shopping and banking, to cite some of the examples provided by the CMA).
“These products also include other technology and devices such as smart speakers, smart watches, home security and lighting (which mobiles can connect to and control),” it went on, adding that it’s looking into whether their dominance of these pipes is “stifling competition across a range of digital markets”, saying too that it’s “concerned this could lead to reduced innovation across the sector and consumers paying higher prices for devices and apps, or for other goods and services due to higher advertising prices”.
The CMA further confirmed the deep dive will examine “any effects” of the pair’s market power over other businesses — giving the example of app developers who rely on Apple or Google to market their products to customers via their smart devices.
The watchdog already has an open investigation into Apple’s App Store, following a number of antitrust complaints by developers.
It is investigating Google’s planned depreciation of third party tracking cookies too, after complaints by adtech companies and publishers that the move could harm competition. (And just last week the CMA said it was minded to accept a series of concessions offered by Google that would enable the regulator to stop it turning off support for cookies entirely if it believes the move will harm competition.)
The CMA said both those existing investigations are examining issues that fall within the scope of the new mobile ecosystem market study but that its work on the latter will be “much broader”.
It added that it will adopt a joined-up approach across all related cases — “to ensure the best outcomes for consumers and other businesses”.
It’s giving itself a full year to examine Gapple’s mobile ecosystems.
It is also soliciting feedback on any of the issues raised in its statement of scope — calling for responses by 26 July. The CMA added that it’s also keen to hear from app developers, via its questionnaire, by the same date.
Taking on tech giants
The watchdog has previously scrutinized the digital advertising market — and found plenty to be concerned about vis-a-vis Google’s dominance there.
That earlier market study has been feeding the UK government’s plan to reform competition rules to take account of the market-deforming power of digital giants. And the CMA suggested the new market study, examining ‘Gapple’s’ mobile muscle, could similarly help shape UK-wide competition law reforms.
Last year the UK announced its plan to set up a “pro-competition” regime for regulating Internet platforms — including by establishing a dedicated Digital Markets Unit within the CMA (which got going earlier this year).
The legislation for the reform has not yet been put before parliament but the government has said it wants the competition regulator to be able to “proactively shape platforms’ behavior” to avoid harmful behavior before it happens” — saying too that it supports enabling ex ante interventions once a platform has been identified to have so-called “strategic market status”.
Germany already adopted similar reforms to its competition law (early this year), which enable proactive interventions to tackle large digital platforms with what is described as “paramount significance for competition across markets”. And its Federal Cartel Office has, in recent months, wasted no time in opening a number of proceedings to determine whether Amazon, Google and Facebook have such a status.
The CMA also sounds keen to get going to tackle Internet gatekeepers.
Commenting in a statement, CEO Andrea Coscelli said:
“Apple and Google control the major gateways through which people download apps or browse the web on their mobiles – whether they want to shop, play games, stream music or watch TV. We’re looking into whether this could be creating problems for consumers and the businesses that want to reach people through their phones.
“Our ongoing work into big tech has already uncovered some worrying trends and we know consumers and businesses could be harmed if they go unchecked. That’s why we’re pressing on with launching this study now, while we are setting up the new Digital Markets Unit, so we can hit the ground running by using the results of this work to shape future plans.”
The European Union also unveiled its own proposals for clipping the wings of big tech last year — presenting its Digital Markets Act plan in December which will apply a single set of operational rules to so-called “gatekeeper” platforms operating across the EU.
The clear trend in Europe on digital competition is toward increasing oversight and regulation of the largest platforms — in the hopes that antitrust authorities can impose measures that will help smaller players thrive.
Critics might say that’s just playing into the tech giants’ hands, though — because it’s fiddling around the edges when more radical intervention (break ups) are what’s really needed to reboot captured markets.
Apple and Google were contacted for comment on the CMA’s market study.
A Google spokesperson said: “Android provides people with more choice than any other mobile platform in deciding which apps they use, and enables thousands of developers and manufacturers to build successful businesses. We welcome the CMA’s efforts to understand the details and differences between platforms before designing new rules.”
According to Google, the Android App Economy generated £2.8BN in revenue for UK developers last year, which it claims supported 240,000 jobs across the country — citing a Public First report that it commissioned.
The tech giant also pointed to operational changes it has already made in Europe, following antitrust interventions by the European Commission — such as adding a choice screen to Android where users can pick from a list of alternative search engines.
Earlier this month it agreed to shift the format underlying that choice screen from an unpopular auction model to free participation.
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