This Week in Apps: Quibi, Snapchat, and iPhone 12 Updates

Greetings and welcome to This Week in Apps, the TechCrunch feature dedicated to summarizing the newest developments in operating systems, the applications compatible with them, and the financial activity surrounding them.

The mobile application market continues to thrive, achieving an impressive 204 billion downloads and $120 billion in direct consumer expenditure during 2019. Individuals are currently dedicating three hours and forty minutes daily to app usage, a figure comparable to time spent watching television. Applications represent more than just a leisure activity – they constitute a significant economic force. In 2019, businesses prioritizing a mobile-first approach demonstrated a collective valuation of $544 billion, which is 6.5 times greater than companies lacking such a focus.

Top Stories

Quibi’s Demise…and Few Expressed Surprise

Numerous factors contributed to the failure of Quibi, making it difficult to pinpoint a single cause. However, at its foundation, the service fundamentally misjudged how, when, and why individuals consume video content on their mobile devices.

The company operated under the assumption that substantial investment in high-quality content production—reaching $100,000 per minute in some cases—followed by dividing it into shorter segments, coupled with a technological framework, would represent a reimagining of cinematic experiences.

In reality, there was limited consumer interest in this type of content, and it didn’t align with the ways people typically seek entertainment on their phones.

When viewers desire a truly immersive, high-quality viewing experience—whether in film or television—they generally prefer a larger screen. Many have invested in high-definition or 4K televisions, and prior to the COVID-19 pandemic, many would even choose to visit a movie theater. On mobile devices, the production value of content is often a secondary consideration, or may not even be noticed.

Quibi also held an inaccurate understanding of what users seek when they have brief periods of free time to watch videos on their phones.

By positioning itself within this market segment, it faced competition from numerous established and influential platforms offering “short-form” content—including YouTube, TikTok, Facebook (through News Feed and Watch), Instagram Stories, and Snapchat. This content is typically consumed for casual distraction during moments of boredom, and doesn’t require significant engagement with an ongoing narrative. It’s not an ideal setting for a longer story, even if presented in shorter segments.

Quibi’s decision to shorten content to fit its self-imposed constraints ultimately compromised the quality of the storytelling and the overall viewing experience.

A reality program reduced to only its highlights can become difficult to follow, revealing the editing techniques and manipulations that are more effectively concealed within longer, less-edited footage. Furthermore, there was no compelling reason to fragment films—such as Quibi’s “The Dangerous Game”—into smaller parts. This approach did not enhance the narrative; it detracted from it. And for those seeking brief news updates—like Quibi’s “Daily Essentials”—a dedicated new application was unnecessary.

While Quibi’s content may have been technically “high quality,” it often lacked genuine appeal. (I still find it hard to believe I watched an episode of “Dishmantled,” featuring chefs recreating dishes thrown at their faces. And Quibi dared to criticize YouTube’s perceived lack of quality and talent?!)

Quibi’s decision to charge a subscription fee was also problematic, as its content library wasn’t geared towards families, lacking content suitable for all ages and failing to offer parental controls. This immediately restricted its potential audience.

Upon launch, Quibi also restricted viewing to mobile phones, preventing users from utilizing their devices as secondary screens while watching shows. (Picture-in-picture support was absent). TechCrunch has extensively covered the use of phones as secondary screens for nearly a decade, often focusing on related startups. However, Quibi eliminated this functionality, seemingly overlooking the fact that people often text, order food, browse Twitter, and check other apps while a television show plays in the background. Did it truly believe a revival of “Punk’d” demanded undivided attention?

Quibi understandably attributed its struggles to the COVID-19 pandemic, anticipating a scenario where users would have more downtime while commuting or waiting in lines.

However, even this assumption proved flawed. The issue would have eventually surfaced regardless; the pandemic merely accelerated its arrival. Quibi’s vision of the United States was limited to densely populated urban areas with extensive public transportation systems and frequent lines. In reality, over half (52%) of the U.S. population resides in suburban areas, 27% in urban centers, and 21% in rural regions. Many non-urban commuters drive themselves to work, and while they could stream Quibi during their commutes, they wouldn’t necessarily be able to focus on it. So, why invest in high-production value for this audience? And, surprisingly, standing in long lines isn’t a common occurrence in smaller cities and towns. If it only takes a few minutes to grab a coffee or burrito before returning to your car, would you really want to begin a new show?

This left Quibi hoping to capture the attention of Gen Z viewers relaxing in their bedrooms. Yet, it aimed to appeal to these young people using Hollywood A-listers they might not even recognize? As the pandemic continued, Quibi found itself competing with (and often losing to) content readily available on televisions through platforms like Netflix, HBO, Hulu, Prime Video, Disney+, and others, where viewers could binge entire seasons at once instead of waiting weekly for a new “quick bite.”

There’s much more that could be discussed, including the question of whether a former CEO of eBay and HP was the appropriate leader for a company aiming to captivate a younger audience. Or how its video-flipping TurnStyle feature, while innovative, added complexity to filmmaking and wasn’t a substantial enough technological advancement to support an entire business. Or how, despite raising significant capital, it still lacked the financial resources of competitors like Netflix and Amazon.

Further post-mortem analyses can be found here and here. Apparently, there’s a strong appetite for dissecting its failure.

Meanwhile, TikTok remains unbanned.

Snap Reaches Milestone with $50 Billion Valuation

The parent company of Snapchat exceeded expectations for the third quarter, projecting approximately $555 million in revenue but actually reporting $679 million – a substantial 52% increase compared to the same period last year. Adjusted earnings per share reached $0.01, surpassing the anticipated loss of $0.04. Furthermore, the company experienced a 4% growth in daily active users, adding 11 million to reach a total of 249 million, representing an 18% year-over-year increase. Snap also demonstrated financial improvement by reducing its net loss to $200 million, a 12% betterment from the previous year.

Following the release of these positive results, the company’s stock price increased by almost 30% in the subsequent trading session, pushing its valuation above $50 billion for the first time, establishing a new record.

Company representatives highlighted during the earnings call that Snap now connects with 90% of the Gen Z demographic and 75% of millennials across the United States, the United Kingdom, and France. This growth in user numbers is credited to the introduction of new features, such as Profiles, Minis, tools for creating Lenses, and advertising utilizing augmented reality. Notably, Snap capitalized on the advertising boycott of Facebook to connect with brands seeking to adjust their marketing strategies and partner with organizations that align with their core principles.

Snap has also recently introduced Sounds on Snapchat, a feature designed to compete with TikTok, enabling users to incorporate licensed music into their Stories.

Weekly News Round-Up

Platforms

• Apple issues iOS and iPadOS 14.1. This significant initial update to iOS 14 incorporates numerous corrections for software errors, addressing issues with widgets, video streaming, and the Family Setup feature for Apple Watch, among other improvements. Support for 10-bit HDR video playback and editing has also been implemented for the iPhone 8 and subsequent models.
• Persistent iOS 14 issue reverts default app selections. Following a user’s selection of a preferred email or web browser application, iOS 14 repeatedly fails to retain that choice, reverting to a different default. This behavior was previously observed and continues to occur, raising questions about whether it is truly a software defect.
• Department of Justice initiates antitrust action against a substantial agreement that established Google as the standard search engine across Apple’s range of devices, including browsers and smartphones.
• AirTags patent filings detail potential applications beyond simple item tracking, such as identifying nearby automated external defibrillators, assessing user body positioning, and enabling interactive games utilizing digital representations, offering further details on Apple’s long-term vision for these tracking devices.
• Google integrates with iOS 14’s widget functionality. Building on the success of its iOS 14 Search widget, which has seen widespread adoption, Google has expanded its offerings with additional widgets. These include a Google Photos widget for browsing past images and a YouTube Music widget.
• Android Messages’ RCS functionality becomes more widely available. After its initial launch in the United States, RCS support has been extended to numerous additional countries. It is now accessible in Italy, Portugal, Singapore, Argentina, Pakistan, Poland, Turkey, Denmark, Netherlands, Austria, Bangladesh, Belgium, Croatia, Czechia, Greece, Ireland, Israel, Kosovo, Lithuania, New Zealand, Serbia, Slovenia, Sri Lanka, Switzerland, Australia, Bulgaria, Indonesia, Japan, Kenya, Latvia, Lebanon, Uganda and Ukraine, with nine of these additions occurring just this month.

Trends

U.S. adoption of “Buy Now, Pay Later” apps has increased by 186% compared to last year, as of September. Sensor Tower reports that applications enabling consumers to make purchases in installments have experienced consistent growth throughout the year, coinciding with the COVID-19 pandemic. The analysis focused on Klarna, Affirm, Afterpay, and QuadPay, collectively amassing 18 million total installations across the App Store and Google Play. September saw a 115% year-over-year increase in installations, alongside an 186% rise in monthly active users.

COVID-19 contact-tracing apps in the U.S. are fragmented and lack coordination. A Wall Street Journal investigation revealed that the absence of a unified national strategy has resulted in a disconnected collection of contact-tracing tools across different states. Only ten states, in addition to the District of Columbia, have implemented the framework developed by Google and Apple; eleven others are currently testing or developing their own applications. Conversely, the European Union has successfully activated cross-border compatibility for its initial set of tracing apps.

• Generation Z dedicates 10% more time to utilizing leading non-gaming applications compared to older demographics, averaging over 4.1 hours monthly. This data, excluding pre-installed apps, was gathered from Android devices in specific markets, including the United States. Gen Z users also demonstrate greater engagement with non-game apps, averaging 120 sessions per app each month.
• The average U.S. consumer spends $20.78 per month on app subscriptions, as indicated by recent data from Adjust. Individuals aged 25 to 34 allocate the highest amount to subscription apps, at $25.85 monthly, while those 55 and older spend the least, at $13.97 per month. Furthermore, over a quarter of Millennials and Gen Z consumers have reduced spending on other services to accommodate mobile app subscription costs, such as choosing fitness apps instead of gym memberships.
• U.S. usage of dating applications is growing, according to Apptopia. The number of new users for Hily, Match, BLK, Bumble, and Grindr is projected to increase month-over-month by 32%, 28%, 20%, 18%, and 11%, respectively.

 

Services

• Amazon’s Luna gaming platform has begun its early access phase for select users. This streaming service provides access to a collection of 50 different games and is compatible with Mac, PC, Amazon Fire TV, and iOS platforms through a web application designed to circumvent App Store regulations. Preliminary assessments indicate occasional performance issues when using Wi-Fi, but generally praise the quality of the web app experience. While Luna offers a selection of popular games, xCloud currently boasts a more extensive game library. A potentially significant advantage for Luna is the anticipated integration with Twitch, planned for future release.
• SoundCloud has introduced SoundCloud DJ, a subscription plan priced at $19.99 per month, geared towards DJs. This plan grants users unlimited offline access to the platform’s music catalog. It also enables high-quality audio streaming and the ability to mix tracks using compatible DJ applications, including Virtual DJ, Cross DJ, and Denon DJ.
• Developers can now showcase their app’s positive feedback directly on user home screens. IMore highlighted a beneficial tool for developers: a widget that displays an app’s five-star reviews on a user’s home screen, available for a one-time cost of $1.99.

Security/Privacy

• Windows GravityRAT malware now targets Android devices. Previously utilized in focused attacks against Indian military groups, this malware was found within an Android spyware application designed to pilfer documents, email correspondence, and contact information.
• Google Play Store delists 3 children’s apps due to improper data handling. These applications, which had amassed over 20 million downloads in total, were removed for violating data collection policies.

Deadpool

• Apple has silently stopped offering its standalone Apple TV Remote application. The application was taken down from the App Store earlier this week. Individuals who own Apple TV devices can now utilize the Remote functionality integrated directly into the Control Center, available from iOS 12 onwards.
• Google is phasing out its Trusted Contacts application for location sharing, with support concluding in December, and it has been removed from the Play Store. The company is advising users to transition to comparable functionalities within Google Maps to locate loved ones.

Policies and Politics

• Coalition for App Fairness experiences significant growth shortly after launch. The Coalition for App Fairness (CAF), a recently established advocacy organization advocating for greater oversight of app marketplaces, has more than doubled its membership base following the announcement of 20 additional partners this week. This organization, spearheaded by prominent app developers and those critical of current practices, including Epic Games, Deezer, Basecamp, Tile, Spotify, and others, first appeared in late September to challenge the dominance of Apple and Google over app stores, specifically addressing the regulations surrounding purchases made within apps and associated fees.

• TikTok implements a new system for notifying users about content takedowns. This system, which underwent testing for several months prior to its worldwide implementation, will now alert TikTok users when their videos are removed and specify the policy that was breached. Users will also be given the option to contest the removal decision. This development aligns with TikTok’s stated commitment to strengthening its efforts against hate speech and extremist viewpoints.
• TikTok is now accessible in Pakistan following the lifting of a ban. The restriction was removed after 11 days, contingent upon TikTok’s commitment to regulate content in line with Pakistan’s cultural standards. Officials expressed concerns regarding videos deemed inappropriate, indecent, and offensive, with particular attention to the exploitation of young girls. However, some observers suggest the ban was also intended to suppress governmental critique.

App News

• WhatsApp Business to See Increased Investment from Facebook. The company announced plans to broaden Shopping features within WhatsApp and introduce charges for certain services offered on the messaging platform, aiming to boost revenue generation. This includes providing businesses with the option to utilize Facebook’s hosting services for managing their WhatsApp communications. Facebook presented this information as a preview of future developments, though specific details regarding new offerings or pricing structures were not disclosed.
• Facebook Developing a Nextdoor-Like Feature. Currently being tested in Canada, this feature involves Facebook automatically creating neighborhood groups designed to connect local users with each other, nearby events, and items available for purchase.

• SEC Settlement Approved for Kik. The court’s decision concludes a lengthy legal dispute, permitting Kik to pay a $5 million penalty for violating securities regulations by failing to register its 2017 Kin token distribution during its initial coin offering (ICO).
• Roblox Exceeds $2 Billion in Mobile Spending Prior to IPO. According to Sensor Tower, the company’s revenue surpassed $1.5 billion in May 2020 and subsequently increased by an additional $500 million within five months, fueled by growth accelerated during the pandemic.
• Cameo Expands into Business-to-Business Sales. The platform known for personalized celebrity videos is shifting its focus to B2B sales through a partnership and revenue-sharing agreement with corporate gifting platform Sendoso.
• Adobe Introduces Content Provenance Tool in Photoshop and Behance Beta. This new tool, available in the beta versions of Photoshop and Behance, is designed to combat misinformation and ensure proper attribution of content.

• Stitcher Podcasts Now Available on Pandora Following Acquisition. The acquisition is complete, and the Stitcher app has undergone a redesign. This integration brings a number of prominent podcast titles in-house, including those from Earwolf, such as “Freakonomics Radio,” “My Favorite Murder,” “SuperSoul Conversations from the Oprah Winfrey Network,” “Office Ladies,” “Conan O’Brien Needs a Friend,” “Literally! with Rob Lowe,” “LeVar Burton Reads,” and “WTF with Marc Maron.”
• New York Times Launches iOS 14 Widget. The new widget allows users to display New York Times headlines directly on their iPhone home screens. It’s important to note that accessing the full articles requires an active subscription.
• PicsArt Extends Design Tools to the Web. The creative platform is targeting business users with the launch of its AI-powered tools on picsart.com. The initial suite includes a template editor, background and object remover, video slideshow maker, and text editor, among other features.

Funding and M&A

• Yuanfudao Secures $2.2 Billion Investment, Becoming Top Edtech Company. The Chinese tutoring app has received $2.2 billion in funding, surpassing Byju’s as the world’s most valuable edtech company, with a current valuation of $15.5 billion.
• Retool Raises $50 Million Led by Sequoia. This funding round, led by Sequoia, values the low-code tool provider for building internal applications at nearly $1 billion. Additional investors include GitHub CEO Nat Friedman, Stripe founders Patrick and John Collison, Brex Inc. founders Henrique Dubugras and Pedro Franceschi, and Y Combinator co-founder Paul Graham.
• Syte Obtains $40 Million to Enhance Visual Shopping for E-commerce. Syte aims to provide e-commerce retailers with visual search capabilities, similar to those found in apps like Google, Pinterest, and eBay. The round was led by existing investor Viola Ventures.
• 98point6 Receives $118 Million for its AI-Powered Telemedicine Platform. The platform, accessible via web, iOS, and Android, utilizes artificial intelligence to deliver telemedicine services.

Recommended Downloads

Halide Mark II

The creators behind the well-regarded professional iPhone camera applications, Halide and Spectre, have recently released their newest application, Halide Mark II. The updated user interface is specifically engineered for convenient single-handed use and incorporates a variety of new capabilities.

Among these additions are a novel gesture-controlled system for switching between automatic and manual settings; responsive tactile feedback for toggling features such as exposure alerts, focus highlighting, and magnification while modifying exposure or focus; a completely revised manual mode; improved dynamic labeling of controls and functions to assist new users in understanding features; compatibility with the full-screen display of iPhone 12 devices; a reimagined reviewer offering comprehensive metadata display; in-application access to photography tutorials through memberships; and more than 40 other enhancements.

A new “Coverage” function allows users to capture both a photo utilizing Smart HDR 2/3 and Deep Fusion for optimal quality and computational photography, alongside a RAW file, with minimal time elapsed between shots.

Halide Mark II also leverages machine learning to process Apple ProRAW files within the application through a 17-step process. This process includes detail refinement, contrast and color adjustments, and other improvements. This feature, known as Instant RAW, intelligently develops the file to achieve the highest possible image quality.

Furthermore, the application features advanced professional tools, such as a new waveform display and color exposure warnings (zebras) that utilize XDR (Extended Dynamic Range) 14-bit RAW sampling, providing precise exposure previews and readings.

The application is available for a one-time purchase price of $36 (currently offered at $30 during a promotional period). Alternatively, a subscription option is available for $11.99 annually (currently $9.99 per year with a locked-in promotional rate). Subscription members receive additional benefits, including custom application icons. Remarkably, current Halide 1 users receive a complimentary upgrade and are encouraged to support the app through a membership.

ClipDrop — AR Copy Paste

https://twitter.com/cyrildiagne/status/1319262984523448323

ClipDrop, a novel application, has been released for iOS, Android, macOS, and Windows, offering a reimagined approach to copying and pasting. This application leverages advanced computer vision artificial intelligence to enable the transfer of images from your computer screen to other applications – such as word processors, image editing software, and graphic design platforms – simply by taking a screenshot. It provides the capability to isolate and extract virtually any element from an image, including specific objects, individuals, illustrations, or textual content.

With the mobile version of the app, users can capture images of physical objects using their device’s camera and then seamlessly integrate those images into other applications or online platforms. A demonstration provided by the company illustrates how an item of apparel can be “clipped” using the camera and subsequently imported into a document.

A dedicated plugin for Photoshop has also been recently introduced, allowing users to directly import images into the application as a new layer complete with a customizable mask.

The application is currently available for $39.99 annually, with the price increasing to $79.99 per year starting in November 2020.

Adobe Illustrator on iPad & Adobe Fresco on iPhone

During this week’s Adobe MAX 2020 virtual event, Adobe released the initial public build of its Illustrator application, designed for vector graphics creation on the iPad. Simultaneously, the company extended the availability of its Fresco application for drawing and painting to iPhone users. Adobe intends to continually enhance Illustrator with additional effects, brushes, and artificial intelligence capabilities over time. The Fresco 2.0 update introduces new smudge brushes and the ability to utilize custom brushes, alongside other improvements.

Party Squasher

Party Squasher is a system created for property owners such as landlords and those managing Airbnb or other vacation rentals. It utilizes a dedicated hardware component alongside a companion mobile application to determine the number of individuals present on the property by detecting the mobile phones in and around the building. This phone count is achieved without requiring the devices to be connected to the property’s Wi-Fi network.

This system is built without the use of cameras or microphones, making it a suitable solution for property owners who want to monitor for unauthorized large gatherings while respecting the privacy of their renters.

Should the device detect a significant number of people, an alert is sent to you via text message or email, allowing you to respond as needed.

The hardware device itself costs $249, and the mobile application requires an annual subscription fee of $199.

Tweets

https://twitter.com/tapbot_paul/status/1319355816730939393

 

Currently, Among Us holds the top position in the App Store’s game rankings!

Do you have any ideas as to the reason for its popularity?