19 Jun 2021

Spotify debuts a Clubhouse rival, Facebook tests Audio Rooms in US, Amazon cuts Appstore commissions

The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

This week we’re looking at more Clubhouse competitors, including Facebook’s first test of its Live Audio Rooms in the U.S. and Spotify’s launch of its Greenroom app for live discussions across an array of topics. Also, Amazon is reducing its App Store fees, after similar moves by Apple and Google.

Spotify launches its Clubhouse competitor

In March, Spotify announced it was acquiring the company behind the sports-focused audio app Locker Room to help speed its entry into the live audio market. This week, the company made good on that deal with the launch of Spotify Greenroom, a new mobile app and likely Clubhouse rival, that allows Spotify users worldwide to join or host live audio rooms, and optionally turn those conversations into podcasts.

The Spotify Greenroom app itself is based on Locker Room’s existing code, with the earlier Locker Room app basically updating to become Greenroom. To join the new app, Spotify users sign in with their current Spotify account information. They’re then walked through an onboarding experience designed to connect them with their interests.

Spotify considers the app a soft launch, as it has plans to announce shows later this summer. It’s also funding shows through a new Creator Fund, whose details have not yet been revealed at this time.

The bigger advantage Spotify has here is that its Green Room sessions are recorded. After a show wraps, the creator can request an audio file which they can then turn into a podcast episode. This ability to straddle both worlds of live and recorded audio could prove to be more useful as the post-COVID world opens up, and users are no longer stuck at home, bored, able to tune in at any time to audio programs.

Amazon lowers its cut of app developer revenues

Amazon this week quietly announced it would follow in the footsteps of app store giants Apple and Google with its introduction of the Amazon Appstore Small Business Accelerator Program. The new program will reduce the commissions Amazon takes on app developer revenues for qualifying smaller businesses.

Previously, Amazon’s Appstore took a 30% cut of revenue, including that from in-app purchases. Now, it will take only 20% from developers who earned up to $1 million in the prior calendar year. The company also said developers with less than $1 million in App Store revenue in a calendar year will receive 10% of their revenue as promotional credit for AWS services, bringing the total program benefits up to an equivalent of 90% of revenue.

The program’s overall structure is similar to Apple’s App Store Small Business Program, announced in late 2020, which reduced Apple’s cut to 15% for developers who earn up to a $1 million threshold, after which they’re moved to the higher 30% standard rate. This rate then continues as they enter the following year.

Google, more recently, took a slightly different course, by lowering the commissions to 15% on the first $1 million of developer revenue earned through the Play billing system each year.

The lack of attention to Amazon’s announcement, both in the developer community and by press, demonstrates how inconsequential Amazon’s own App Store has become in the greater app ecosystem.

Facebook tests audio rooms in usa

In April, Facebook announced a slew of new audio products, including its Clubhouse clone, called Live Audio Rooms, which will be available across both Facebook and Messenger.

Since May, Facebook has been publicly testing the audio rooms feature in Taiwan with public figures, but today the company hosted its first public test of Live Audio Rooms in the U.S. The event itself was hosted by Facebook CEO Mark Zuckerberg, who chatted with fellow execs and creators.

The creators used their time in the Audio Room to talk more about their gaming journeys on Facebook, what kind of games they were streaming and other gaming-related matters.

Zuckerberg also briefly teased new gaming features, including a new type of post, coming soon, called “Looking for Players.” This post type will help creators find others in the community to play games with while they’re streaming.

In addition, badges that are earned from live streams will now carry over to fan groups, Zuckerberg said, adding that it was a highly requested feature by creators and fans alike. Fan groups will also now become available to all partnered creators on Facebook Gaming, starting today, and will roll out to others in the coming weeks.

The experience of using the Live Audio Room is very much like what you’d expect on another platform, like Clubhouse or Twitter Spaces. The event’s hosts appear in rounded profile icons at the top of the screen, while the listeners appear in the bottom half of the screen, as smaller icons. In between is a section that includes people followed by the speakers.

The active speaker is indicated with a glowing ring in shades of Facebook blue, purple and pink. If verified, a blue check appears next to their name.

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