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On Monday, Google announced that it would be clarifying the in-app purchase billing policies for its Google Play app store. In the interest of consistency and fairness, Google states that it will “be more explicit that all developers selling digital goods in their apps are required to use Google Play’s billing system.” And, consequently, they will be required to pay Google 30% of the money they earn from it. Developers will have until September 30, 2021 to make the change.
This move might have been prompted by the recent expulsion of Epic’s game Fortnite from both Apple and Google’s app stores for violating those in-app purchase policies. But whether Google thinks it’s being clearer now or not, that still leaves a rather big question for this blog.
Will this affect ebooks?
Historically, some developers such as Netflix and Spotify—and, of course, Amazon—have been able to bypass the in-app purchase requirement by using their own credit card payment system. But Google’s new payment guidelines requiring use of their billing system for in-app purchases explicitly state that they will apply to “subscription services (such as fitness, game, dating, education, music, video, and other content subscription services)”. They don’t specifically mention ebooks, but they do also cover items, app functionality or content, and cloud software and services. You could make a case that ebooks fit into several of those categories.
As we noted when Apple started enforcing its vig in 2011, the book industry has very tight margins, and there’s just no room for Amazon to pay another 30% of the purchase price of its ebooks on top of its other costs—whether it’s paying that surcharge to Apple or to Google. Amazon got around this with Apple by removing in-app purchase functionality from its iOS apps altogether. Other apps either followed suit, or raised their prices by 30% to Apple users. (Ebook stores couldn’t take the latter approach, though, given that agency pricing locks in ebook prices across every vendor and every platform.) They could certainly do the same again for Android users.
Since Android is much more open than Apple, developers could go the same route as Fortnite, and make a non-crippled version of their app available for download from their own site. While this does make it harder to get people interested in a stand-alone app, multi-platform services like Spotify or Netflix would probably have an easier time of enticing their users into downloading Android apps from them.
Given that Amazon has its own broadly adopted Fire tablet platform and app store, and makes the Fire app store available for free download to any Android user, it’s possible Amazon might hardly even notice if it had to pull its Kindle app from Google Play. All it would have to do would be to prompt Android users to add its app store any time they visited Amazon’s web site. (And another part of that Google announcement I linked earlier focused on making it easier for users to install and use other app stores in the new Android 12 release.) Of course, other ebook stores such as Nook or Kobo that don’t have such big platforms wouldn’t have it so easy.
Given that it’s still early days yet, there hasn’t been a lot of time to react for developers who would be affected by this change in payment policies. But if this is going to affect all the major subscription and media services, sooner or later you can expect them to start voicing much the same complaints as they did when Apple started enforcing its policies. It should be interesting to keep an eye on this over the next few months.
Photo by Negative Space on Pexels.com
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An aspect of video calls that many of us take for granted is the way they can switch between feeds to highlight whoever’s speaking. Great — if speaking is how you communicate. Silent speech like sign language doesn’t trigger those algorithms, unfortunately, but this research from Google might change that.
It’s a real-time sign language detection engine that can tell when someone is signing (as opposed to just moving around) and when they’re done. Of course it’s trivial for humans to tell this sort of thing, but it’s harder for a video call system that’s used to just pushing pixels.
A new paper from Google researchers, presented (virtually, of course) at ECCV, shows how it can be done efficiency and with very little latency. It would defeat the point if the sign language detection worked but it resulted in delayed or degraded video, so their goal was to make sure the model was both lightweight and reliable.
The system first runs the video through a model called PoseNet, which estimates the positions of the body and limbs in each frame. This simplified visual information (essentially a stick figure) is sent to a model trained on pose data from video of people using German Sign Language, and it compares the live image to what it thinks signing looks like.
This simple process already produces 80 percent accuracy in predicting whether a person is signing or not, and with some additional optimizing gets up to 91.5 percent accuracy. Considering how the “active speaker” detection on most calls is only so-so at telling whether a person is talking or coughing, those numbers are pretty respectable.
In order to work without adding some new “a person is signing” signal to existing calls, the system pulls clever a little trick. It uses a virtual audio source to generate a 20 kHz tone, which is outside the range of human hearing, but noticed by computer audio systems. This signal is generated whenever the person is signing, making the speech detection algorithms think that they are speaking out loud.
Right now it’s just a demo, which you can try here, but there doesn’t seem to be any reason why it couldn’t be built right into existing video call systems or even as an app that piggybacks on them. You can read the full paper here.
I live in San Francisco, but I work an East Coast schedule to get a jump on the news day. So I’d already been at my desk for a couple of hours on Wednesday morning when I looked up and saw this:
As unsettling as it was to see the natural environment so transformed, I still got my work done. This is not to boast: I have a desk job and a working air filter. (People who make deliveries in the toxic air or are homeschooling their children while working from home during a global pandemic, however, impress the hell out of me.)
Not coincidentally, two of the Extra Crunch stories that ran since our Tuesday newsletter tie directly into what’s going on outside my window:
As this guest post predicted, a suboptimal attempt I made to track a delayed package using interactive voice response (IVR) indeed poisoned my customer experience, and;
Sheltering in place to avoid the novel coronavirus — and wildfire smoke — is fueling growth in the video-game industry, perhaps one factor in Unity Software Inc.’s plan to go public ahead of competitor Epic Games. In a two-part series, we looked at how the company has expanded beyond games and shared a detailed financial breakdown.
We covered a lot of ground this week, so scroll down or visit the recently redesigned Extra Crunch home page. If you’d like to receive this roundup via email each Tuesday and Friday, please click here.
Thanks very much for reading Extra Crunch; I hope you have a relaxing and safe weekend.
In a two-part series that ran on TechCrunch and Extra Crunch, former media columnist Eric Peckham returned to share his analysis of Unity Software Inc.’s S-1 filing.
Part one is a deep dive that explains how the company has grown beyond gaming to develop multiple revenue streams and where it’s headed.
For part two on Extra Crunch, he studied the company’s numbers to offer some context for its approximately $11 billion valuation.
As we’ve covered previously, the COVID-19 pandemic is making the world a lot smaller.
Investors who focus on their own backyards still have an advantage, but the ability to set up a quick coffee meeting with a promising investor is no longer one of them.
Even though some VCs are cutting first checks after Zoom calls, regional investors’ personal networks are still a trump card. Tourists will always rely on guide books, however, which is why we continue to survey investors around the world.
A Dealroom report issued this summer determined that 97 VC funds backed more than 1,600 funding rounds in Poland last year. With over 2,400 early- and late-stage startups and 400,000 engineers in the country, it’s easy to see why foreign investors are taking notice.
Editor-at-large Mike Butcher reached out to several investors who focus on Warsaw and Poland in general to learn more about the startups fueling their interest across fintech, gaming, security and other sectors:
- Bryony Cooper, managing partner, Arkley Brinc VC
- Anna Wnuk-Błażejczyk, investor relations manager, Experior.vc
- Rafał Roszak, investment director, YouNick Mint
- Michal Mroczkowski, partner, Market One Capital
- Marcus Erken, partner, Sunfish Partners
- Borys Musielak, partner, SMOK Ventures
- Mathias Åsberg, partner, Nextgrid
- Kuba Dudek, SpeedUp Venture Capital Group
- Marcin Laczynski, partner, Next Road Ventures
- Michał Rokosz, partner, Inovo Venture Partners
We’ll run the conclusion of his survey next Tuesday.
Even for fledgling startups, creating a robust customer service channel — or at least one that doesn’t annoy people — is a reliable way to keep users in the sales funnel.
Using AI and automation is fine, but now that consumers have grown used to asking phones and smart speakers to predict the weather and read recipe instructions, their expectations are higher than ever.
If you’re trying to figure out what people want from hyper-personalized customer experiences and how you can operationalize AI to give them what they’re after, start here.
For today’s edition of The Exchange, Natasha Mascarenhas joined Alex Wilhelm to examine how the pandemic-fueled surge of interest in edtech is manifesting on the funding front.
The numbers suggest that funding will far surpass the sector’s high-water mark set in 2018, so the duo studied the numbers through August 31, which included a number of mega-rounds that exceeded $100 million.
“Now the challenge for the sector will be keeping its growth alive in 2021, showing investors that their 2020 bets were not merely wagers made during a single, overheated year,” they conclude.
The odds are low that someone’s going to enter my home and steal my belongings. I still lock my door when I leave the house, however, and my valuables are insured. I’m an optimist, not a fool.
Similarly: Is your startup’s cybersecurity strategy based on optimism, or do you have an actual response plan in case of a data breach?
Security reporter Zack Whittaker has seen some shambolic reactions to security lapses, which is why he turned in a post-mortem about a corporation that got it right.
“Once in a while, a company’s response almost makes up for the daily deluge of hypocrisy, obfuscation and downright lies,” says Zack.
There’s a lot of buzz about special purpose acquisition companies these days.
Used-car marketplace Shift announced its SPAC in June 2020, and is on track to complete the process in the next few months, so co-founder/co-CEO George Arison wrote an Extra Crunch guest post to share what he has learned.
Step one: “If you go the SPAC route, you’ll need to become an expert at financial engineering.”
I am a software engineer and have been looking at job postings in the U.S. I’ve heard from my friends about J-1 Visa Training or J-1 Research.
What is a J-1 status? What are the requirements to qualify? Do I need to find a U.S. employer willing to sponsor me before I apply for one? Can I get a visa? How long could I stay?
— Determined in Delhi
While we count down to the September 23 premiere of NYSE: PLTR, Danny Crichton looked at the “robust secondary market” that has allowed some investors to acquire shares early.
“Given the number of people involved and the number of shares bought and sold over the past 18 months, we can get some insight regarding how insiders perceive Palantir’s value,” he writes.
Zack Whittaker interviewed Bugcrowd CTO, founder and chairman Casey Ellis about the best practices he recommends for creating a startup culture that takes security seriously.
“It’s an everyone problem,” said Ellis, who encouraged founders to promote the notion of “productive paranoia.”
Now that the threat envelope includes everyone from marketing to engineering, employees need to “internalize the fact that bad stuff can and does happen if you do it wrong,” Ellis said.
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RollerCoaster Tycoon 3: Complete Edition arrives on both Switch and PC on September 24. The complete edition comes with the Soaked! and Wild! expansion packs, so you’re good to go on all the bonus content to make some ripping rides.
The draw on Switch is clearly to build the ultimate coaster anywhere, anytime, but PC players get the bonus of having widescreen mode and 1080p. Take a peek at a new trailer showcasing the roaring roller coaster ride below!
Google, Google, Google
For well over a decade Google has dominated search to where most stories in the search sphere were about Google or something on the periphery.
In 2019 Google generated $134.81 billion in ad revenues.
When Verizon bought core Yahoo three years ago the final purchase price was $4.48 billion. That amount was to own their finance vertical, news vertical, web portal, homepage, email & web search. It also included a variety of other services like Tumblr.
Part of what keeps Google so dominant in search is their brand awareness. That is also augmented by distribution as defaults in Chrome and Android. Then when it comes to buying search distribution from other players like Mozilla Firefox, Opera or Apple’s Safari they can outbid everyone else as they are much better at monetizing tier 2 markets and emerging markets than other search companies are since they have such strong ad depth. Even if Bing gave a 100% revshare to Apple they still could not compete with Google in most markets in terms of search monetization.
Apple as a Huge Search Traffic Driver
In 2019 Google paid just under £1.2 billion in default payments for UK search traffic. Most of that went to Apple. Historically when Google broke out their search revenues by region typically the US was around 45% to 46% of search ad revenue & the UK was around 11% to 12%, so it is likely Google is spending north of $10 billion a year to be the default search provider on Apple devices:
Apple submitted that search engines do not pay Apple for the right to be set as the primary default search engine on its devices. However, our assessment is that Google does pay to be the primary default on Apple devices. The agreement between Google and Apple states that Google will be the default web search provider and the same agreement states that Google will pay Apple a specified share of search advertising revenues. We also note that Google does not pay compensation to any partners that set Google Search as a secondary option. This further suggests that Google’s payment to Apple is in return for Apple setting Google as the primary default.
Apple is glad to cash those checks & let Google handle the core algorithmic search function in the web browser, but Apple also auto-completes many searches from within the address bar via various features like website history, top hit, news, Siri suggested website, suggested sites, etc.
A Unique Voice in Search
The nice thing about Apple powering some of those search auto-complete results themselves is their results are not simply a re-hash of the Google search results so they can add a unique voice to the search marketplace where if your site isn’t doing as well in Google it could still be promoted by Apple based on other factors.
Apple users generally have plenty of disposable personal income and a tendency to dispose of much of it, so if you are an Android user it is probably worth having an Apple device to see what they are recommending for core terms in your client’s markets. If you want to see recommendations for a particular country you may need to have a specialized router targeted to that country or use a web proxy or VPN.
Most users likely conduct full search queries and click through to listings from the Google search result page, but over time the search autocomplete feature that recommends previously viewed websites and other sites likely picks up incremental share of voice.
A friend of mine from the UK runs a local site and the following shows how the Apple ecosystem drove nearly 2/3 of his website traffic.
His website is only a couple years old, so it doesn’t get a ton of traffic from other sources yet. As of now his site does not have great Google rankings, but even if it did the boost by the Apple recommendations still provides a tailwind of free distribution and awareness (for however long it lasts).
For topics covered in news or repeat navigational searches Apple likely sends a lot of direct visits via their URL auto-completion features, but they do not use the feature broadly into the tail of search across other verticals, so it is a limited set of searches that ultimately benefit from the shortcuts.
Apple Search Ranking Factors
Apple Search may take the following into account when ranking web search results:
- Aggregated user engagement with search results
- Relevancy and matching of search terms to webpage topics and content
- Number and quality of links from other pages on the web
- User location based signals (approximate data)
- Webpage design characteristics
I have seen some country-code TLDs do well in their local markets in spite of not necessarily being associated with large brands. Sites which do not rank well in Google can still end up in the mix provided the user experience is clean, the site is useful and it is easy for Apple to associate the site with a related keyword.
Panda-like Quality Updates
Markets like news change every day as the news changes, but I think Apple also does some Panda-like updates roughly quarterly where they do a broad refresh of what they recommend generally. As part of those updates sites which were once recommended can end up seeing the recommendation go away (especially if user experience declined since the initial recommendation via an ad heavy layout or similar) while other sites that have good engagement metrics get recommended on related searches.
A friend had a website they sort of forgot that was recommended by Apple. That site saw a big jump on July 9, 2018 then it slid back in early August that year, likely after the testing data showed it wasn’t as good as some other site Apple recommended. They noticed the spike in traffic & improved the site a bit. In early October it was widely recommended once again. That lasted until May of 2019 when it fell off a cliff once more. They had monetized the site with a somewhat spammy ad network & the recommendation mostly went away.
The recommendations happen as the person types and they may be different for searches where there is a space between keywords and the word is ran together. It is also worth noting Apple will typically recommend the www. version of a site over the m. version of a site for sites that offer both, so it makes sense to ensure if you used separate URLs that the www version also uses a responsive website design.
Indirect Impact on Google
While the Apple search shortcuts bypass Google search & thus do not create direct user signals to impact Google search, people who own an iPhone then search on a Windows computer at work or a Windows laptop at home might remember the site they liked from their iPhone and search for it once more, giving the site some awareness that could indirectly bleed over into impacting Google’s search rankings.
Apple could also eventually roll out their own fully featured search engine.