This Week in Apps: Privacy, Parler, and Clubhouse

This Week in Apps: A Recap of Mobile News

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

The app industry continues to thrive, achieving a record 218 billion downloads and $143 billion in global consumer spending in 2020.

Last year, users devoted 3.5 trillion minutes to apps on Android devices alone. Furthermore, app usage in the U.S. now surpasses the time spent watching live television. Currently, Americans average 3.7 hours of live TV viewing daily, but dedicate four hours per day to their mobile devices.

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

This week’s focus includes Clubhouse’s surge in popularity, updates to the App Store’s rules, the firing of Parler’s CEO, and concerns raised by various companies regarding Apple’s privacy changes.

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Top Stories

Clubhouse Gains Mainstream Traction

The exclusive audio platform has experienced rapid growth, attracting prominent figures from the tech, media, and entertainment industries, including Drake, Estelle, Tiffany Haddish, Kevin Hart, Jared Leto, and Ashton Kutcher. This week marked a significant breakthrough when Tesla and SpaceX founder Elon Musk joined Clubhouse, exceeding the app’s 5,000-person room limit.

Unable to join the main room, fans livestreamed the event on platforms like YouTube and Twitter, creating breakout rooms for overflow discussions. Musk later engaged in conversation with Vlad Tenev, the CEO of Robinhood, discussing the GameStop saga.

On Thursday, Facebook CEO Mark Zuckerberg, using the pseudonym “Zuck23,” casually participated in “The Good Time Show” talk show on the app, mirroring Musk’s earlier appearance.

The platform’s format allowed the executives to address a broad audience informally, covering topics such as space travel, cryptocurrency, AI, and vaccines (Musk), and AR/VR’s future in business and remote work (Zuckerberg).

However, this arrangement raises concerns. The soft-ball questions, blocked journalists, and the app’s funding from venture capital firm Andreessen Horowitz (a16z) – which aims to bypass traditional media – are points of discussion.

Despite these considerations, the app’s ability to attract leading tech personalities for open conversations is undeniable.

The future direction of Clubhouse remains uncertain. Some describe it as a modern equivalent of a late-night talk show, prioritizing guest narratives over rigorous questioning. This is acceptable, provided users understand that prominent guests may have an agenda, even during seemingly casual interactions.

Regardless, Clubhouse has proven itself to be a significant player in the app landscape.

Companies Express Concerns About Apple’s Privacy Changes

Initially, Facebook and Google were the primary voices opposing Apple’s privacy updates, including changes to IDFA. Facebook utilized full-page ads and considered legal action, while Google delayed iOS app updates to address privacy labeling requirements. However, other companies reporting fourth-quarter earnings also highlighted the potential impact of IDFA.

Snapchat CEO Evan Spiegel warned investors about potential disruptions to Snap’s advertising business, acknowledging the uncertain long-term consequences. Unity estimated that IDFA changes would reduce its revenue by approximately 3%, or $30 million, in 2021.

The full extent of the IDFA update’s impact remains unclear. These are preliminary estimates based on testing and assumptions about user behavior. Furthermore, reports challenge Facebook’s claims of a 60% revenue reduction for small businesses, suggesting an exaggeration of the impact.

Facebook is actively testing methods to encourage users to accept tracking, presenting prompts explaining the benefits of data sharing for personalized advertising.

Apple Updates App Store Guidelines

Apple characterized these changes as moderate, representing clarifications and adjustments already in progress. The updated guidelines now include instructions for implementing the new App Tracking Transparency rules. A new section details the process for appealing app review rejections.

Other changes are largely semantic, broadening the definition of person-to-person experiences to “services” and clarifying subscription models for gaming companies.

You can review the specific changes here.

Parler CEO Fired

Parler – the app removed from the App Store, Google Play, and Amazon AWS – terminated its CEO, John Matze, this week following difficulties in restoring the app’s functionality. Reports indicate the firing stemmed from disagreements with conservative donor Rebekah Mercer, who controls Parler’s board. Matze advocated for stricter content moderation to address domestic terrorism and incitement to violence, but claims his suggestions were ignored. Parler disputes these claims.

Following Parler’s deplatforming after the Capitol events, alternative social networks briefly gained traction, but have not sustained significant user bases. The app charts are now dominated by established platforms like Facebook, Instagram, YouTube, TikTok, and Snapchat.

Perhaps a lack of opposing viewpoints diminishes the appeal of these platforms?

Weekly News

Apps with Earnings News

• Snap reported Q4 revenue of $911 million, up 62% year-over-year. Daily Active Users (DAUs) increased 22% year-over-year to 265 million, but the stock price declined due to a weak Q1 forecast.
• PayPal exceeded expectations with a 25.58% year-over-year increase in EPS to $1.08. Revenue reached $6.12 billion, up 23.28% year-over-year. The company added 16 million net new accounts, bringing the total to 277 million.
• Venmo’s Total Payment Volume (TPV) grew 60% year-over-year to $47 billion, and its customer base expanded by 32%, reaching nearly 70 million accounts. Revenue is projected to approach $900 million in 2021.
• Spotify reported a 17% year-over-year increase in revenue to €2.17 billion, with 345 million Monthly Active Users (MAUs) and 155 million paid subscribers.

Platforms: Apple

• The iOS 14.5 beta introduces several new features, including App Tracking Transparency (ATT) and the ability to unlock your iPhone while wearing a mask (with an Apple Watch). Other updates include worldwide dual-SIM 5G support, AirPlay 2 for Apple Fitness+, and controller support for PlayStation 5 and Xbox Series X.
• Code within the iOS 14.5 beta suggests new financial features, such as Apple Card Family for multi-user accounts and a FinHealth framework for personalized financial suggestions.
• Apple released updated design resources for app development across its platforms, including iOS 14 and iPadOS 14.
• A recent service outage impacted the App Store, causing blank pages and broken search results.
• Certain U.S. states will permit casino, sports, and lottery games starting March 1, 2021. Apple has updated its App Store Guidelines to reflect this, adding “gambling” as a recognized app category.
• App Store growth reached a six-month high in January 2021, according to Morgan Stanley, citing Sensor Tower data.
• Some users are experiencing app crashes after syncing iPads or iPhones with M1 Macs.

Platforms: Google

• Huawei’s HarmonyOS is presented as an original creation, but Ars Technica revealed it to be an Android fork.
• Google’s Android OS will power the infotainment systems of millions of Ford vehicles starting in 2023.
• Google is exploring an alternative to Apple’s anti-tracking feature, potentially offering a less stringent approach.

Gaming

• YouTube launched Clips, a short-form video feature similar to Twitch’s clips.
• Epic Games is urging Australia’s market regulator to take action against Apple for its market power and 30% commission on app sales and in-app purchases.
• A judge ordered a 7-hour deposition from Tim Cook in the Epic vs. Apple lawsuit.
• Google is scaling back its first-party game development for Stadia, and the head of Stadia Games and Entertainment, Jade Raymond, is leaving the company.
• Amazon Luna’s game streaming service expanded to more Android devices.

Augmented Reality

• Color of Change launched The Pedestal Project, an AR experience on Instagram that allows users to place statues of racial justice leaders on empty pedestals.
• TikTok partnered with WPP to provide access to new AR ad formats.

Security & Privacy

• YouTube added its App Store privacy label, detailing the data it collects from users.

Fintech

• Venmo is evolving into a financial super app with plans to integrate crypto, budgeting, saving, and shopping features.
• Robinhood CEO Vlad Tenev will testify before the House Financial Services Committee on February 18 regarding the GameStop situation.
• Reddit experienced its best month ever in terms of installs, driven by the “meme stock” frenzy.
• Cash App halted trading of meme stocks due to increased capital requirements.
• Robinhood raised an additional $2.4 billion from shareholders to manage the trading volume.
• Joompay, a European alternative to Venmo and TransferWise, launched after obtaining a Luxembourg Electronic Money Institution (EMI) license.

Social & Photos

Snapchat’s Spotlight now has 100 million MAUs, fueled by daily payouts of over $1 million to top creators.

TikTok will downrank unsubstantiated claims flagged by fact-checkers and display warning banners.

TikTok owner ByteDance sued Tencent over alleged monopoly practices.

Instagram is developing a “Vertical Stories” feed similar to TikTok.

IRL, an events website and app, surpassed 10 million monthly users.

Instagram banned around 400 accounts linked to the OGUsers hacker forum.

Instagram added “Recently Deleted,” a feature for reviewing and recovering deleted content.

Triller canceled its Super Bowl ad and will host a fan contest instead.

Daily Twitter usage remained consistent despite the ban of Donald Trump.

Communication and Messaging

• Element was temporarily removed from the Play Store due to abusive content, but was reinstated after Google corrected its error.
• Clubhouse CEO Paul Davison confirmed the introduction of a subscription tool for creators.
• Telegram became the most-downloaded app overall in January 2021.

Streaming Services and Media

• Shazam added iOS 14 widgets for quick song identification.
• Spotify added new playlists, podcasts, and takeovers for Black History Month.
• Discovery+’s mobile app had more first-month downloads than HBO Max.

Health & Fitness

• The Google Fit app on Pixel devices will gain the ability to measure pulse and breathing rates using the phone’s camera.

Productivity

• Microsoft rebranded Office Lens to Microsoft Lens and added new features.

Government & Policy

• Myanmar’s military government ordered telecoms to block Facebook.
• TikTok will re-verify the age of all users in Italy following a tragic incident.

Funding and M&A

• Uber acquired Drizly, an alcohol delivery service, for $1.1 billion.
• Vivino, a wine recommendation app, raised $155 million in Series D funding.
• AppLovin acquired Adjust, a mobile ad attribution company, in a deal reportedly worth over $1 billion.
• Latitude, a startup building storylines for games, raised $3.3 million in seed funding.
• Guangzhou Quwan Network Technology, a Chinese social gaming startup, raised $100 million in Series B funding.
• Flink, a trading app for the Mexican market, raised $12 million in Series A funding.
• Hip, a commuting platform, raised $12 million led by NFX and Magenta Venture Partners.
• Bot MD, an AI chatbot for doctors, raised $5 million in Series A funding.
• Expectful, a meditation and sleep app for new mothers, raised $3 million in seed funding.
• Brightwheel, a communication app for preschools, raised $55 million, valuing the business at over $600 million.
• ELSA, a language learning app, raised $15 million.
• Djamo, a financial super app in Francophone Africa, received backing from Y Combinator.
• Bumble’s IPO filing set a price range of up to $1 billion.

Downloads

Reese’s Book Club

Hello Sunshine, the media company founded by actress and producer Reese Witherspoon, has introduced a dedicated application for Reese’s Book Club. This book club is specifically curated to highlight narratives centered around women and champion diverse voices in literature.

Currently, the club boasts a substantial following of almost 2 million on Instagram. Furthermore, 38 of its chosen books have achieved recognition on The New York Times bestseller list.

Several selections have been successfully adapted for the screen. These include Hulu’s “Little Fires Everywhere,” the forthcoming Amazon series “Daisy Jones and the Six,” Netflix’s “From Scratch,” and the anticipated film adaptation of “Where the Crawdads Sing.”

The newly launched app provides users with a means to stay informed about each month’s book selection. It also allows browsing of previous picks and participation in discussions with other readers.

Users can also engage with authors directly and participate in contests for prizes. Soon, the app will offer exclusive merchandise purchases.

Proceeds from these sales will benefit The Readership, a platform dedicated to promoting literacy and amplifying underrepresented voices. This initiative may involve establishing book-sharing spaces within communities and supporting independent bookstores.

The application is available for complimentary download on both the  App Store and Google Play.

Carrot Weather

A significant update was released for the popular, and often sarcastic, Carrot Weather app in late January. This overhaul included a completely redesigned user interface.

New icons and a unique “interface maker” tool were added, allowing users to customize the app’s appearance. The update also introduced “secret locations” as a playful hidden feature.

The app now utilizes a vertical layout, maximizing screen space for weather information. Smart cards dynamically display relevant weather details as needed.

Carrot Weather has transitioned to a freemium model, offering a free download with optional subscription services, rather than a one-time purchase price.