This Week in Apps: Apple, Spotify, Instagram Updates

The Ever-Evolving App Landscape: A Weekly Recap

Welcome back to This Week in Apps, a TechCrunch series dedicated to recapping the latest developments in mobile operating systems, applications, and the broader app economy.

The app industry demonstrates continued expansion, achieving a record 218 billion downloads and $143 billion in global consumer spending during 2020. Android users alone spent an impressive 3.5 trillion minutes utilizing apps last year. Furthermore, app usage in the U.S. now surpasses the time dedicated to watching live television. Currently, the average American devotes 3.7 hours daily to live TV, contrasted with four hours spent on their mobile devices.

The Business of Apps

Apps are not merely a source of entertainment; they represent a significant commercial opportunity. Mobile-first companies collectively held a valuation of $544 billion in 2019, a figure 6.5 times greater than companies without a mobile focus. In 2020, investors channeled $73 billion into mobile companies, marking a 27% year-over-year increase.

This Week in Apps serves as a central resource for staying informed about this rapidly changing industry, providing the latest news, updates, startup funding details, merger and acquisition information, and recommendations for new apps and games.

Interested in receiving This Week in Apps directly in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Top Stories

Apple Addresses Allegations of App Store Ad Purchases

A recent Forbes report claimed Apple was secretly purchasing Google ads for prominent subscription apps available on the App Store. The purpose, according to the report, was to redirect web searchers away from developers’ websites, where users could subscribe without incurring Apple’s commission fees. Some companies alleged Apple placed these ads without their consent and faced difficulties in having them removed.

Apple, rarely responding to such reports, issued a strong rebuttal to these claims.

The company stated it does not engage in secret ad buying, but has been strategically placing ads for over five years, openly communicating with developers about these initiatives. Apple further asserted that this practice is not improper, drawing a parallel to retailers routinely advertising products they sell. For example, a search for a winter jacket on Google may yield ads from various retailers, alongside or instead of ads from the jacket’s manufacturer. Apple views its advertising strategy as consistent with standard online retail practices. Currently, Apple runs ads promoting over 100 third-party apps across platforms like Google, YouTube, TikTok, Snapchat, and Twitter.

The Forbes report specifically mentioned Babbel, Bumble, HBO, MasterClass, Plenty of Fish, and Tinder as impacted applications.

While the report’s characterization may be inaccurate, it highlights the increasingly strained relationship between Apple and its developer community. Previously, developers might have welcomed free advertising; now, some perceive even this as a potential threat. Apple, however, maintains that this is not the prevailing sentiment among developers.

Spotify Integrates Lyrics

After years of addressing user requests, Spotify announced this week the global rollout of a new Lyrics feature, available to both Free and Premium users across all platforms. The feature is powered by Musixmatch, building upon a prior agreement to offer lyrics in India, Latin America, and Southeast Asia.

Last year, Spotify introduced real-time, synchronized lyrics to users in 26 countries, initially tested in 2019. This marked the first time lyrics support was available in 22 of those markets. The agreement later expanded to 28 markets. Spotify users in Japan also gained access to lyrics through a separate partnership with SyncPower.

Previously, users in other regions had access to “Behind the Lyrics,” a feature launched in 2016 with Genius, offering lyrics interspersed with trivia about the song, its meaning, and the artist. However, through Spotify’s feedback forum, users consistently expressed a preference for a feature providing real-time lyrics without interruptions. Spotify will now discontinue “Behind the Lyrics” and introduce plain lyrics.

The feature is currently rolling out to global users and is accessible on mobile, desktop, and TV. (Further details are available on TechCrunch.)

Instagram Discontinues Threads

Instagram’s standalone messaging app, Threads, will be discontinued. The app will cease to be supported by the end of December 2021, as confirmed by the company to TechCrunch following reports circulating on social media. Instagram will notify existing Threads users in-app starting November 23, directing them to return to Instagram for messaging.

Threads was launched in 2019 as a companion app to Instagram, following the shutdown of the Direct messaging app. Instead of focusing solely on inbox functionality, Threads was designed as a “camera-first” messenger for staying in touch with “Close Friends” on Instagram. It later expanded to allow messaging all users, but failed to gain significant traction.

To date, Threads has accumulated approximately 13.7 million global installs from the App Store and Google Play, according to Sensor Tower. However, user reviews were largely negative, with the app receiving a 3.1-star rating on the App Store, citing bugs, usability issues, layout problems, and missing features.

Instagram explained that discontinuing Threads allows the company to focus its resources on a single messaging service, with Threads’ features now being integrated into the main Instagram app.

Weekly News

Platforms: Apple

• iOS 15.1.1 released: This update addresses dropped call issues on iPhone 12 and 13 models.
• SportsKit framework discovered: Code within the iOS 15.2 beta reveals the “SportsKit” framework, integrated with the Apple TV app, Siri, and home screen widgets, offering real-time sports score updates.
• Anti-competitive lawsuit: Apple faces another class-action lawsuit alleging anti-competitive behavior related to the App Store and in-app payments. Epic Games’ Tim Sweeney advocates for a universal app store across all platforms.

Platforms: Google

• Play Store website redesign: Google is testing a new design for its Play Store website, replacing sidebar navigation with quick-access buttons and a profile-based settings menu.
• Pixel 6 update: A Pixel 6 update delivers minor bug fixes and performance improvements, specifically addressing fingerprint sensor performance.

Platforms: Amazon

• Appstore SDK update: Amazon launched the latest version of its Appstore SDK, enabling developers to offer digital content and subscriptions.

E-commerce

Shopping app installs increase: Shopping app installs rose 10% year-over-year, according to Sensor Tower and Adjust. Average monthly active users (MAUs) for the top 150 e-commerce apps globally reached approximately 18 million in Q3 2021, up from 14 million in Q3 2019.

Regional download trends: India, Indonesia, and Mexico led in e-commerce app downloads, while U.S. downloads slowed. India saw 470 million downloads in the first three quarters of 2021, a 49% year-over-year increase. U.S. downloads, however, decreased by 16% to 218 million.

Google Maps expands grocery tracking: Google Maps now supports online grocery tracking for more Kroger Family stores, including Kroger, Fry’s, Ralphs, and Mariano’s, in addition to Fred Meyers in Portland.

Square Photo App launched: Square launched a new app enabling sellers to capture high-quality product photos and seamlessly sync them to their Square catalog or online store.

Augmented Reality

• Niantic hires Trust & Safety Director: Pokémon GO maker Niantic appointed its first Global Director of Trust & Safety, reflecting the growing importance of responsible AR technology development.
• Snapchat partners with Sony Music: Snapchat announced a partnership with Sony Music for new AR music lenses, called “Sound Lenses,” embedding songs within lenses.
• AR app tells Anne Frank’s story: The Bookcase for Tolerance app utilizes AR to immerse users in a 3D model of Anne Frank’s rooms and the stories of other individuals facing discrimination.

Fintech

• Robinhood lawsuit dismissed: A U.S. judge dismissed the lawsuit against Robinhood, which alleged collusion with Citadel Securities to restrict trading of meme stocks.
• Neobank app downloads surge: Neobank app downloads topped 264 million from Q4 2020 to Q3 2021. Brazil and Latin America are experiencing rapid growth, with Nubank being the most downloaded app in Brazil.
• Bliss app launched: Fintech startup Jiko partnered with Euphoria to launch Bliss, a banking app designed for the transgender community in the U.S.

Social

• Instagram introduces new features: Instagram rolled out features including the ability to delete individual photos from carousel posts and a shake-to-report feedback mechanism.
• TikTok signs music licensing deal: TikTok struck its first music licensing agreement with the Australasian Performing Right Association and Australasian Mechanical Copyright Owners Society (APRA AMCOS).
• Snapchat updates Snap Map: Snapchat launched Memories and Explore Layers on its Snap Map, allowing users to view past Snaps and discover nearby events and restaurants.

TikTok ecosystem expands: The TikTok app ecosystem, encompassing third-party apps offering features like video downloads and analytics, has reached over 1.3 billion downloads worldwide.

TikTok updates Safety Center: TikTok updated its Safety Center resources following research on teen interest in harmful viral challenges.

Pinterest launches incubator: Pinterest launched TwoTwenty, an in-house incubator for new projects, to accelerate experimentation with video and creator tools.

Facebook Neighborhoods testing: Facebook will begin testing Facebook Neighborhoods in 132 U.S. cities.

Twitter phases out AMP: Twitter is phasing out support for Accelerated Mobile Pages (AMP).

Photos

• Waldo launches consumer app: Waldo launched a direct-to-consumer app offering ad-free, private photo-sharing with enhanced privacy controls.

Messaging

• WhatsApp introduces privacy controls: WhatsApp rolled out new profile privacy controls to iOS beta testers, providing granular control over profile visibility.

Streaming & Entertainment

• Clubhouse adds live captions: Clubhouse added live captions on iOS, enhancing accessibility for deaf and hard-of-hearing users.
• Facebook invests in audio: Facebook is allocating funds from its $1 billion creator fund to its audio initiatives, including Live Audio Rooms.

Gaming

• U.S. strategy game spending increases: U.S. mobile strategy game spending increased 24% year-over-year to $4.2 billion.

Utilities

• Google Maps adds area busyness feature: Google Maps added a feature displaying real-time crowd levels in different areas.

Health & Fitness

• Google Assistant supports vaccination appointments: Google Assistant will soon help users in India book vaccination appointments.

Travel & Transportation

• Grab experiences outage: Southeast Asian ride-hailing app Grab experienced a multi-day outage impacting users in Singapore, Malaysia, and the Philippines.

Government & Policy

• Apple and Google questioned over age ratings: The U.K.’s data protection watchdog questioned Apple and Google regarding app age ratings following concerns raised by the 5Rights Foundation.

Funding and M&A

💰 AllTrails raises $150M: AllTrails, the app for hikers and outdoor enthusiasts, secured $150 million from Permira for international expansion and product development.

🤝 Medium acquires Knowable: Medium acquired audio-learning app Knowable to integrate audio capabilities into its platform.

🤝 Twitter acquires Threader: Twitter acquired Threader, an app for compiling and sharing Twitter threads.

💰 Deskimo raises $3M: Singapore-based Deskimo, a desk booking app for coworking spaces, raised $3 million in seed funding.

💰 UNest raises $26M: Fintech app UNest raised $26 million in Series B funding for financial planning tools for parents.

💰 Walkie-talkie raises $3.25M: Social audio app Walkie-talkie raised $3.25 million in seed funding.

💰 Goody raises $15M: Gift-giving app Goody raised $15 million in funding.

💰 Runway raises $2M: Runway, a platform for mobile app releases, raised $2 million in seed funding.

💰 Wishly raises $800K: Social impact app Wishly raised $800,000 in seed funding.

💰 Fireside secures funding: Mark Cuban-backed creator platform Fireside is closing a “seed+” round of close to $10 million.

Downloads

Racket

Racket, a newly launched audio app, allows users to share audio stories in short snippets, similar to Facebook’s Soundbites or Cappuccino. The app features a TikTok-like vertical feed with audio clips of 99 seconds or less. The company secured $3 million in pre-seed funding from Greycroft, Foundation Capital, and LightShed Ventures.

Audyo

iOS audio app Audyo exited private beta, offering users a tool to convert web pages into high-quality audio. The app also incorporates social features, allowing users to share listens, discover playlists, and highlight content.

Macro+

Macro+, a new app from the makers of Camera+, capitalizes on the iPhone’s Macro photography capabilities. The app works on any iOS 15-compatible iPhone, providing tools for capturing and editing close-up photos.