Apple's App Store Going Premium Apps?

The hot weekend rumor is that Apple will be adding its own version of a Rodeo Drive within the App Store. The Premium Store (if you will) will be a showcase for higher end applications - supposedly at the $20.00+ rate. In addition to the promotion, there would likely be other incentives for Premium Applications... perhaps ala Facebook's preferred developer program.

This makes total sense for Apple as it responds to two major issues:

- Gallery navigation has failed as its size has swelled. Ask eBay what happens when too many listings exist and you rely on the search box? Twitter is falling into a similar navigational issue....

- 99% of applications are better off being free or $0.99... and it is in Apple's best interest to have successful, more-expensive applications.

The rumor, however, sounds less like a Premium Gallery and more like a sort option. I hope it is something more bolder - because otherwise it is merely another tab or box on an already cluttered experienced.

Facebook Connects Comes to iPhone, Game-Changing

The best iPhone Apps are those that engage across other properties beyond the iPhone. Zynga, SGN, Playfish and others iPhone power-developers have done a brilliant job of those. For most though, building cross-platform, socially-aware applications has proven difficult and consequently made the majority of applications 'un-sticky'.

But this will all change with Facebook's announcement that Facebook Connect is available for iPhone Applications.

Suddenly gaming becomes social. Applications that before were content delivery mechanisms now have a social graph to relate to.

It's big. In a way it is akin to what Xbox Live does for Xbox... put probably bigger because it is open and more flexible.

InsideFacebook has some screenshots:

Facebook's announcement can be read here:

Now your iPhone apps can enjoy the benefits that Facebook Connect sites and Facebook Platform apps already enjoy, including:

Making API calls so your app can access users' profiles and share information on Facebook. Publishing to Facebook via Feed forms.

Asking users for extended permissions, like offline access, so you can still interact with their data when they're offline.

Adam Carolla Sets Podcast World Record: 550,000+ Downloads of Single Podcast

When Adam Carolla started his new podcast series, I wrote that radio and satellite radio was officially dead... why would talent like Adam Carolla stick with those formats when they can reach instant success via podcasting?

A week later... the data is even more overwhelming:

- Carolla set a world record for podcast downloads with over 550,000 to a single podcast (Carolla with ESPN host Dave Damechek) - Carolla is averaging 2,000,000 downloads per week (thats 400,000 per show) - He still hasn't fully figured out the format - the sound quality varies and the website is still amazingly simple

This is great news for consumers:

- I get access to daily content that is available commercial free and on-demand - Carolla is clearly happy, excited and engaged... and he's producing great content - Much like the way the web moves, podcasting does a great job of introducing listeners to other content providers / sources. Dave Damechek's subscription rate must be through the roof... and so it moves serendipitously - Apple and iTunes are making it easier to download podcasts via wifi on the iPhone - making it even easier to subscribe

And most importantly, Carolla's podcasting success means that he will find financial success through the format - which in turn means that he will continue and others will follow. We all win.

Apple iPhone Ad Shakes Up ESPN.com

I've written about Apple's innovative ad units before - in particular, on Yahoo.And, I've criticized ESPN's new ad formats before.

Today, the two came together in a great way: Apple is running another experiential, rich-media campaign on ESPN's homepage. The ad is again terrific and far more engaging than anything else on the web... you know an ad is effective when you press the replay button (again and again). Add engagement, large real estate and rich-media - and you can believe that ESPN is fetching great CPMs.

I do have two remarks though:

1. I do not like that the ad unit extends across the entire screen because it causes inadvertent clicking. I understand why it is technically positioned that way - but it is annoying and very transparent....

2. It is strange that there doesn't seem to be a user cap - I have seen this ad 10+ times today. Usually the advertiser would cap it on an IP or cookie basis? I see Rapleaf ads dozens of times a day... it kills me. And not only is it annoying - it loses its efficacy after viewing #50.

Apple's Full Page New York Times Ad: All About the Apps

Flipping through the New York Times today, I noticed this full page ad for Apple's iPhone which notably doesn't even mention the iPhone itself. The ad is entirely about the App Store and the breadth of games, tools and applications available on the phone. It is not the first time that Apple has promoted apps in their marketing campaigns (storefronts and TV spots are a couple examples) - but it is notable at a time when Blackberry and others are announcing their versions of the app store. It is a world where distribution attracts developers and developers equal inventory:

Blackberry App World Launch - Three Big Question Marks

Three interesting notes from the Blackberry App World FAQ / developer announcement that was released.

Minimum Price of $2.99?

The iPhone has proven that there are pricepoints for three types of apps: 1. Free (ad-supported) 2. $0.99 (consumers consider it the price of an iTunes song or a McDonald's hamburger) 3. $9.99 (high quality games by brands like EA)

Blackberry is instituting a minimum price of $2.99 for paid apps. Fascinating. My guess is that this has something to do with the fact that: 1. Apple has perfected micro-payments (thanks to iTunes); Blackberry hasn't and the margins on a single $0.99 purchase are far worse than on a $2.99 2. Blackberry wants to focus on more corporate applications and avoid the consumer-friendly inventory that runs $0.99 on Apple (I believe this is a bad move)

As I said, fascinating. And, if the $2.99 price point limits distribution (and it will), it could sway developers to offer free apps.... which would have an unintended consequence for Blackberry: those free apps will be ad-supported and Blackberry will not get a cut of that revenue.

How can I price my application? BlackBerry App World will allow you to select a suggested retail price in US dollars for your application that is associated with a pricing tier. The pricing tier chart below shows the application price for the 4 currencies available: USD, CDN, GBP, and Euros. Pricing Tiers Tiers USD CDN GBP EUR 1 Free Free Free Free 2 $2.99 $3.69 £2.59 €2.75 3 $3.99 $4.89 £3.45 €3.65 4 $4.99 $6.15 £4.29 €4.55 5 $5.99 $7.35 £5.15 €5.49 6 $6.99 $8.59 £5.99 €6.39 7 $7.99 $9.79 £6.85 €7.29 8 $8.99 $11.05 £7.69 €8.19 9 $9.99 $12.25 £8.55 €9.09 Tiers increment by $1 from $2.99 to $19.99 Tiers increment by $10 tiers from $19.99 to $99.99 Tiers increment by $50 tiers from $99.99 to $599.99 Tiers increment by $100 tiers from $599.99 to $999.99

Please note that pricing tiers are subject to change.

2. $200 Application Fee; 10 App Limit

Right off the bat, Blackberry is being far more aggressive than Apple ($200 vs. $99). Perhaps because they believe that Blackberry will attract fewer individual developers and draw a more corporate following. Perhaps because they believe that, in hindsight, Apple could have charged more and gotten away with it.

Furthermore, Blackberry limits the number of apps that fee covers to ten.

I think that Blackberry should do whatever they can to chase inventory... after all, Apple has an enormous lead in this space and playing catch up is already difficult (just ask Android). Charging more than Apple and limiting applications per account does just that: limit available applications. Not wise.

What is the application submission fee used for?

There is a $200 USD administration fee to complete registration and submit applications. In the event your account is not approved, this $200 USD administration fee will be refunded.

This initial fee will allow for 10 application submissions:

Multiple versions of the same application will not count as separate submissions (Example: an application might have a version for the BlackBerry Storm smartphone and the BlackBerry Bold smartphone)

An update to your application, resulting in a submission of new cod files, will be counted against your 10 application submissions Resubmission of a rejected application will be counted against your 10 application submissions

Removal of an application will not affect your remaining balance of application submissions

If you have used all 10 application submissions, an additional $200 USD administration fee will be applied on your next submission, adding another 10 application submissions to your account

3. Themes Cannot Be Sold

I find it strange that there is a specific note to prohibit the selling of themes because: 1. Themes already have a marketplace on Blackberries and, while note applications, would be in high demand 2. The specific call-out suggests that Blackberry intends to open a tangential marketplace of themes

Can I distribute Themes? Themes cannot be distributed in the first release of BlackBerry App World.

Adam Carolla's Podcast: 1M Downloads... Radio, XM Officially Dead?

Last week, Adam Carolla transitioned from national radio talk show host. His contract with CBS prevents him from returning to radio (supposedly through 2009) - and in exchange, he is paid handsomely in the meantime. So Adam Carolla decided started a podcast - launching it last week. It had over 1,000,000 downloads... a staggering number:

I’m overwhelmed by your response to the podcast. In less than 24 hours, the first podcast was downloaded over a quarter of a million times, which is awesome.

This means that we’ll be able move along faster in terms of getting this project up into a new gear, and getting a little more production, more guests, and everything you guys deserve. I’m grateful to have such fantastic fans, and honored at this response.

I’ve been very busy working on this pilot with CBS, and getting all the parts in place for that, which has taken a lot of time and energy, but we’re still focused on putting a great podcast out.

Again, I’d like to thank everyone, and let everyone know that we’ll all get our shit together very soon, and bring this to a new level.

Keep up the good work.

-Adam Carolla

Consider that Corolla achieved one million downloads with: - no real promotion or advertising campaign (and no brand behind it) - a basic website based on Wordpress.com - no mobile-based website like ESPN's Podcenter (which is how I consume ESPN podcasts on-the-go) - just entered iTunes (important for access, subscription)

Adam Carolla is not alone in his success. ESPN's Bill Simmons (the Sports Guy) had over 550,000 podcast downloads last week.

These numbers are enormous. And for Adam Carolla to find such success so quickly and without a big brand or producer - talent should really ask themselves, why not follow Carolla's lead? Consider that Carolla used to start his show at the crack of dawn, talk for several hours, abide by FCC regulation... and it cost $20,000,000 annually to run. Now his podcasts are 30-60 minutes, free of censorship and available in a new format that is killing traditional radio and has rendered satellite radio useless - why subscribe to XM and Sirius when you can get Adam Carolla, Bill Simmons, The Wall Street Journal, etc portably and on-demand?

And if Carolla and others can find success in podcasting - then the supply of content will enable the medium to grow (to me, this really was the mitigating factor). But with 1,000,000 downloads and a lean staff, Carolla will certainly be able to find financial success.... which is, in turn, great for consumers.

Facebook Photo's Remarkable Growth - Did iPhone App Play a Role?

According to ComScore (and via TechCrunch), Facebook Photos is running away from the nearest competitors: Photobucket, Flickr and Picasa (in that order).

Facebook has been the space's leader for over a year, but the gap has widened and really started to open in September 2008. TechCrunch suggests that it is due to the profile redesign:

"But the tagging feature has been part of Facebook Photos for a long time. What happened in September to accelerate growth? That is when a Facebook redesign went into effect which added a Photos tab on everyone’s personal homepage."

How about two other additions to why the marked growth is occurring (although I totally agree that the timing is due to the profile redesign):

1. The iPhone App is one of the most popular and addictive. And it makes photo taking / sharing dead easy. In fact, it is easier to upload a photo than to enter your 'status update.' Based on my network's feed - photo usage via the App has grown significantly.

2. Switching cost: once you begin to upload photos onto Facebook, it becomes difficult to move them elsewhere or start uploading elsewhere. The switching costs are high and there are network effects. As Facebook grows (and it is everywhere now), there is less of a reason to share via print sites like oFoto / Kodak, Picasa, Shutterfly and so forth.

iPhone Headphones Jack Problems... Here's How to Fix

Over the last couple days, my iPhone 3G's headphones were acting strangely. I could hear audio, but the microphone wasn't transmitting my voice and the receiver button (used to answer calls / turn MP3 player on/off) wasn't working. I assumed that it was an issue with the headphones - but after trying a second pair, I had the same issue. So clearly it's a problem with the iPhone's headphone jack. After some investigating and poking around (literally), I found a solve. And I since I realized that this is a common issue and not much is written about it... here's the solution:

First, the iPhone's headphone input apparently has a small sensor inside of it that, when covered (ie by lint), prevents the phone from activating the headphone's microphone and other functions. If you have a can of compressed air - insert it into the jack's opening and blow... making sure to tilt throughout the entire area.

If you don't have compressed air, the hack-ish solution is take your heaphones and insert it into the iPhone repeatedly and quickly. It should clear up the sensor.

I tried both solutions. The hack was precsiely that: a hack which lasted a couple hours. Once I used compressed air (and about half the can!), everything ran perfectly.