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Under the Radar

Under the Radar 1: Adapting to the Market

 

00:00:00 ◼   ► we should to be intro didn't work that

00:00:06 ◼   ► it's fine it's alright all right so this

00:00:07 ◼   ► is episode 1 of under the radar I'm

00:00:11 ◼   ► Marco Arment and I'm David Smith you may

00:00:14 ◼   ► know our other podcasts david has been

00:00:16 ◼   ► doing developing perspective for many

00:00:19 ◼   ► years I did build and analyze first now

00:00:21 ◼   ► I do the accidental tech podcast and

00:00:23 ◼   ► top-4 and this is going to be a show

00:00:26 ◼   ► about development basically it's kind of

00:00:29 ◼   ► like the the the sequel the combination

00:00:32 ◼   ► of build and analyze with developing

00:00:34 ◼   ► perspective and in the spirit of

00:00:37 ◼   ► developing respective never being longer

00:00:38 ◼   ► than 15 minutes David how long is this

00:00:40 ◼   ► true gonna be never longer than 30

00:00:42 ◼   ► minutes so let's get started let's get

00:00:44 ◼   ► started I think the place to start seems

00:00:46 ◼   ► right now we're recording just after the

00:00:49 ◼   ► Apple TV app store launched and it went

00:00:54 ◼   ► online I think on last Friday and it's

00:00:56 ◼   ► you know it's had it had a the usual

00:00:58 ◼   ► fanfare and the things that go on with

00:01:00 ◼   ► that but neither one of us launched

00:01:02 ◼   ► anything on day one and then for myself

00:01:05 ◼   ► it's the first Apple product I've ever

00:01:06 ◼   ► not been in the store on day one for

00:01:08 ◼   ► which is interesting

00:01:10 ◼   ► yeah I'm the same way I I think I mean I

00:01:14 ◼   ► was there for the watch and the Apple TV

00:01:17 ◼   ► and I even I even got one of the early

00:01:20 ◼   ► access developer units because I thought

00:01:22 ◼   ► I might use it and it just literally sat

00:01:25 ◼   ► on my desk and I was I was so busy doing

00:01:26 ◼   ► other things because I was doing I was

00:01:29 ◼   ► working on overcast and trying to get

00:01:31 ◼   ► the 2.0 update out the door and that

00:01:34 ◼   ► kind of precluded this because if I'm

00:01:35 ◼   ► gonna make an Apple TV app it has to be

00:01:37 ◼   ► all about streaming because local

00:01:39 ◼   ► storage with the Apple TV is so limited

00:01:40 ◼   ► and I didn't have the streaming engine

00:01:43 ◼   ► done yet so I worked on the iPhone app

00:01:46 ◼   ► first and I've been I've been doing bug

00:01:47 ◼   ► fixes on that since and I just I have

00:01:49 ◼   ► literally not even opened like an Xcode

00:01:52 ◼   ► project with the TV I've no I haven't

00:01:54 ◼   ► even seen the TV simulator I have not

00:01:56 ◼   ► written a single line of TV code yet

00:01:58 ◼   ► have you yeah I I got a I got a

00:02:01 ◼   ► developer kit as well and I wrote a

00:02:04 ◼   ► version of Padre angler my podcast

00:02:07 ◼   ► client for the Apple TV and it works and

00:02:11 ◼   ► it plays I didn't

00:02:13 ◼   ► spend the time and energy to get it

00:02:15 ◼   ► ready for day one though but it's like

00:02:17 ◼   ► it's an interesting developer platform

00:02:18 ◼   ► because it is essentially iOS just - a

00:02:21 ◼   ► bunch of stuff like there's a couple of

00:02:23 ◼   ► new things but essentially it's just i

00:02:25 ◼   ► OS UI kids with a different input

00:02:28 ◼   ► mechanism rather than obviously being

00:02:30 ◼   ► touch based it's remote control based

00:02:33 ◼   ► but I used it and is like it's it's fine

00:02:35 ◼   ► and easy the thing that ultimately I

00:02:37 ◼   ► think slowed me down though is I just

00:02:40 ◼   ► became like there's just so much else to

00:02:42 ◼   ► do and so many other things that like if

00:02:46 ◼   ► I'm trying to be on every Apple platform

00:02:48 ◼   ► as a one-man shop it's essentially

00:02:49 ◼   ► impossible now and so I looked at the

00:02:51 ◼   ► Apple TV and I'm like it's gonna be a

00:02:53 ◼   ► long time before there's a big market

00:02:54 ◼   ► there and so I just didn't prioritize it

00:02:58 ◼   ► yeah and you know and I feel like you

00:03:00 ◼   ► know we're coming at this from from two

00:03:02 ◼   ► different viewpoints here you know I'm I

00:03:04 ◼   ► tend to work on a very small

00:03:06 ◼   ► I tend to work on usually one app for a

00:03:08 ◼   ► span of years I very rarely have

00:03:10 ◼   ► additional apps I'm not very good at

00:03:13 ◼   ► splitting my time between multiple apps

00:03:14 ◼   ► I pretty much just do one thing and I

00:03:17 ◼   ► try to make that one app big and

00:03:18 ◼   ► complicated and appeal to a ton of

00:03:20 ◼   ► people in order to to keep it going

00:03:22 ◼   ► whereas the background you come from is

00:03:25 ◼   ► is I think much more interesting

00:03:27 ◼   ► honestly because you know when people

00:03:30 ◼   ► and this is one of the reasons I wanted

00:03:31 ◼   ► to do the show with you and one of the

00:03:33 ◼   ► reasons I wanted to call it under the

00:03:34 ◼   ► radar because when people do when people

00:03:37 ◼   ► think about Apple developers they tend

00:03:39 ◼   ► to think about the handful of well-known

00:03:42 ◼   ► ones who make mass consumer apps that

00:03:46 ◼   ► you may have heard of so apps like tweet

00:03:47 ◼   ► bot or net newswire and or you know the

00:03:50 ◼   ► apps from panic that that you know a lot

00:03:51 ◼   ► of developers have heard of or use or

00:03:53 ◼   ► wowed by and there's this massive number

00:03:56 ◼   ► of developers who we don't usually hear

00:04:00 ◼   ► about in in the circle of like Apple

00:04:02 ◼   ► enthusiasts and tech bloggers and stuff

00:04:04 ◼   ► and I think you are a very very good

00:04:06 ◼   ► example of of this massive market and

00:04:09 ◼   ► and I think you you do it better than

00:04:11 ◼   ► most people would do it and so what you

00:04:14 ◼   ► do is not like the high profile you know

00:04:19 ◼   ► a high attention mac blogger long term

00:04:24 ◼   ► ecosystem kind of thing

00:04:27 ◼   ► you do something way more pragmatic and

00:04:30 ◼   ► so can you maybe you just go into that

00:04:32 ◼   ► briefly for anyone who doesn't know you

00:04:34 ◼   ► yet from who's listening to this for

00:04:35 ◼   ► some reason can you go into like what

00:04:38 ◼   ► exactly you do and and how you got there

00:04:40 ◼   ► so I yeah so I've been an iOS developer

00:04:43 ◼   ► essentially since the AppStore started

00:04:45 ◼   ► about seven and a bit years ago I didn't

00:04:47 ◼   ► quite make the day one of the AppStore

00:04:50 ◼   ► mostly because of like business approval

00:04:52 ◼   ► stuff but I've been developing ever

00:04:55 ◼   ► since then and since then I've launched

00:04:57 ◼   ► I think I recently worked this out to

00:05:00 ◼   ► something like fifty-two unique app

00:05:02 ◼   ► concepts in the last seven years so it

00:05:05 ◼   ► works out to be about once every one

00:05:07 ◼   ► every two months or so it hasn't been

00:05:09 ◼   ► exactly that even if a pace but that's

00:05:11 ◼   ► roughly the average and but I've been

00:05:15 ◼   ► making a good steady comfortable living

00:05:17 ◼   ► from it for about six-and-a-half of

00:05:19 ◼   ► those seven years and so I I have lots

00:05:22 ◼   ► of different products in a lot of

00:05:24 ◼   ► different areas my tend to like at this

00:05:27 ◼   ► point I have probably five or six that

00:05:29 ◼   ► are like my main income makers and they

00:05:32 ◼   ► each the biggest one of them only makes

00:05:35 ◼   ► up a third of my income so it's a very

00:05:36 ◼   ► diversified type of thing and that's my

00:05:39 ◼   ► the approach that I found that works

00:05:40 ◼   ► well for me is to make lots of small

00:05:44 ◼   ► bets and see which one pays off in the

00:05:47 ◼   ► store rather than trying to take the

00:05:49 ◼   ► approach like with overcast if I

00:05:51 ◼   ► remember right it's like you spend

00:05:52 ◼   ► eighteen months working on it YUM as

00:05:54 ◼   ► like a big major focus and like for me

00:05:57 ◼   ► the longest I've ever spent in a product

00:05:58 ◼   ► before I launched it is probably four

00:06:01 ◼   ► weeks or something along those lines and

00:06:03 ◼   ► so it's a very different kind of a focus

00:06:05 ◼   ► where I'll put something together I'll

00:06:07 ◼   ► put it out in the store I try and make

00:06:08 ◼   ► it like good in quality but very

00:06:11 ◼   ► straightforward and you know see what

00:06:14 ◼   ► happens and that approach means that I

00:06:17 ◼   ► end up now with a lots of different

00:06:18 ◼   ► products doing a lot of different things

00:06:20 ◼   ► and you know I'm as if it's you know I

00:06:22 ◼   ► have the benefit of diversity in terms

00:06:24 ◼   ► of stability but the difficulty in terms

00:06:27 ◼   ► of keeping up with things when I have

00:06:28 ◼   ► such a wide sort of portfolio to manage

00:06:32 ◼   ► and one thing I like about the way you

00:06:35 ◼   ► work as well is that you challenged

00:06:38 ◼   ► assumptions that

00:06:40 ◼   ► any of us in like the the other half of

00:06:43 ◼   ► this community don't challenge like you

00:06:46 ◼   ► will like you you make your income in

00:06:48 ◼   ► part from I add I don't know anybody

00:06:50 ◼   ► else I'm I don't think I have any other

00:06:52 ◼   ► developer friends who have a meaningful

00:06:54 ◼   ► presence with using I ads and and you do

00:06:57 ◼   ► and you will challenge assumptions based

00:07:00 ◼   ► on things like monetization support app

00:07:02 ◼   ► concepts I'll design like all sorts of

00:07:05 ◼   ► stuff that that you challenge and and I

00:07:07 ◼   ► think you benefit from that because you

00:07:10 ◼   ► while everyone else's is locked into

00:07:13 ◼   ► this one way of thinking and trying to

00:07:15 ◼   ► shape the App Store into like trying to

00:07:19 ◼   ► like you know educate consumers into the

00:07:22 ◼   ► way they think the App Store should be

00:07:23 ◼   ► you are out there actually adapting and

00:07:26 ◼   ► and thriving and what the App Store

00:07:28 ◼   ► actually is yeah I mean I I think I try

00:07:31 ◼   ► and think of when I look at the App

00:07:34 ◼   ► Store think is a business in general

00:07:35 ◼   ► like I can't change my customers all I

00:07:41 ◼   ► can do is react to them for them for the

00:07:43 ◼   ► most part like I like using things like

00:07:46 ◼   ► people who should want to pay for

00:07:48 ◼   ► software as like a statement it doesn't

00:07:50 ◼   ► make any sense to me like people are

00:07:52 ◼   ► going to want to do whatever they want

00:07:54 ◼   ► to do and like my job as a developer as

00:07:56 ◼   ► a businessman is to look at the market

00:07:58 ◼   ► that I'm I want to work in and find ways

00:08:01 ◼   ► to adapt my business to it and I don't

00:08:04 ◼   ► just use I adore advertising like I make

00:08:06 ◼   ► the majority of my income from

00:08:07 ◼   ► advertising and I add and that's been in

00:08:11 ◼   ► somebody's been far more stable than any

00:08:13 ◼   ► of the more paid or subscription or

00:08:15 ◼   ► patronage or all the other things that I

00:08:16 ◼   ► have like the most stable income I get

00:08:19 ◼   ► is from advertising and I love it

00:08:22 ◼   ► because advertising is great because it

00:08:23 ◼   ► I've it the likely Adelines developer

00:08:26 ◼   ► and customer like goals like my goal is

00:08:29 ◼   ► to get them using the app as much as I

00:08:30 ◼   ► can because the more they use it the

00:08:32 ◼   ► more advertising income I make and from

00:08:34 ◼   ► you know if they're using the app a lot

00:08:36 ◼   ► that means they like it and so for me it

00:08:37 ◼   ► was a no-brainer to get started but it

00:08:39 ◼   ► definitely is I know what you mean like

00:08:40 ◼   ► it's it's a bit counter to I think a lot

00:08:42 ◼   ► of the it's not necessary

00:08:45 ◼   ► pretentiousness but there's a there's a

00:08:46 ◼   ► definitely that air of like like you

00:08:49 ◼   ► want Apple you want to sell an Apple

00:08:51 ◼   ► like product in the App Store

00:08:53 ◼   ► but that doesn't necessarily work

00:08:55 ◼   ► because apple doesn't even sell apple

00:08:58 ◼   ► like products in the App Store

00:09:00 ◼   ► yeah and I think this was all like I

00:09:02 ◼   ► think this was all rooted in the the

00:09:05 ◼   ► community of like kind of like nice

00:09:08 ◼   ► Kraft Mac independent developers that

00:09:11 ◼   ► that has existed for quite some time on

00:09:12 ◼   ► the Mac before iOS and everything became

00:09:14 ◼   ► really so big you know people like panic

00:09:17 ◼   ► or delicious monster you know people

00:09:19 ◼   ► like that

00:09:19 ◼   ► brent simmons dave wantanabe like

00:09:22 ◼   ► there's this crowd of like kind of old

00:09:24 ◼   ► school the old guard who have been

00:09:26 ◼   ► around for a while you know omni group

00:09:27 ◼   ► is a big one who've been very successful

00:09:29 ◼   ► at this and and many of them continue to

00:09:31 ◼   ► be very successful at this but there was

00:09:33 ◼   ► this idea for so long that many people

00:09:35 ◼   ► still hold that that would translate

00:09:37 ◼   ► into iOS and that also any developer who

00:09:42 ◼   ► would be able to program iOS apps would

00:09:44 ◼   ► kind of think that they deserved that

00:09:46 ◼   ► same level of success if they just put a

00:09:49 ◼   ► lit there at all or if they put you know

00:09:53 ◼   ► a lot of work into something and and

00:09:55 ◼   ► there's many problems with this that are

00:09:56 ◼   ► way too long to discuss in a 30 minute

00:09:58 ◼   ► podcast one of which is that that the

00:10:01 ◼   ► amount of work you put into something

00:10:02 ◼   ► does not correlate to the value that the

00:10:04 ◼   ► market will place on it or the amount of

00:10:06 ◼   ► money you can make from it but I think

00:10:09 ◼   ► it's productive to challenge this notion

00:10:12 ◼   ► of like well you know is this really the

00:10:14 ◼   ► way the world should work and and

00:10:17 ◼   ► regardless of whether I think it should

00:10:19 ◼   ► work this way if this is not the way the

00:10:22 ◼   ► world works like in practice

00:10:23 ◼   ► what what can I do as a developer to to

00:10:27 ◼   ► succeed in this market and sitting

00:10:29 ◼   ► around waiting for the market to change

00:10:31 ◼   ► to benefit you is probably not very

00:10:34 ◼   ► productive because that's just unlikely

00:10:36 ◼   ► to happen yeah and the interesting thing

00:10:38 ◼   ► I was wondering what you think about

00:10:40 ◼   ► this cuz I'm seeing the the spread of

00:10:43 ◼   ► the of your app career in the App Store

00:10:44 ◼   ► like he's starting an instant paper

00:10:46 ◼   ► which was paid upfront $10 if I remember

00:10:48 ◼   ► right yeah the whole first year it was

00:10:50 ◼   ► 10 bucks and I dropped at the 5 minute

00:10:51 ◼   ► and then it's like following the

00:10:53 ◼   ► progression then I think you know your

00:10:54 ◼   ► income started to shift in some ways

00:10:56 ◼   ► more to subscription and in-app purchase

00:10:59 ◼   ► and then switching entirely to overcast

00:11:04 ◼   ► where it became it was you know free

00:11:05 ◼   ► with in-app purchase

00:11:07 ◼   ► four features and then now it's entirely

00:11:09 ◼   ► free with like patronage support mm-hmm

00:11:13 ◼   ► it's you've done you've essentially

00:11:15 ◼   ► followed the trajectory of the App Store

00:11:18 ◼   ► in that way right you're starting with

00:11:20 ◼   ► like the the old school kind of well

00:11:23 ◼   ► it's it's premium software I should

00:11:25 ◼   ► charge a lot of money to it's still good

00:11:27 ◼   ► software but the way you pay for it is

00:11:29 ◼   ► completely different right and and most

00:11:32 ◼   ► of that has again just been because I am

00:11:35 ◼   ► like I'm not like thinking I'm like you

00:11:37 ◼   ► know treading new ground and being an

00:11:39 ◼   ► explorer no I'm usually coming to these

00:11:41 ◼   ► to these changes late actually like I

00:11:43 ◼   ► like instapaper holding the price at $10

00:11:45 ◼   ► for the whole first year was a mistake

00:11:47 ◼   ► when I dropped at the fives

00:11:49 ◼   ► sales went up considerably and then you

00:11:51 ◼   ► know later on it dropped to three I

00:11:52 ◼   ► think I held it for a while three or

00:11:54 ◼   ► four and then you know in sales were

00:11:56 ◼   ► pretty good then I started experimenting

00:11:57 ◼   ► and then shifting to subscription that

00:12:01 ◼   ► that ended up making way more money than

00:12:03 ◼   ► I thought it would and doing very well

00:12:05 ◼   ► and then with overcast coming out at

00:12:06 ◼   ► free with in-app purchase and now with

00:12:10 ◼   ► patron eggs like those have all done

00:12:12 ◼   ► better than I expected them to and you

00:12:14 ◼   ► know it this is all about just adapting

00:12:16 ◼   ► to what the market is many people blame

00:12:18 ◼   ► the market on on you know Apple not

00:12:22 ◼   ► implementing upgrade pricing or the App

00:12:25 ◼   ► Store not having good enough discovery

00:12:27 ◼   ► or search and and all of those things

00:12:29 ◼   ► are valid complaints but they're not the

00:12:31 ◼   ► biggest problem the biggest problem is

00:12:33 ◼   ► there's just a huge oversupply of

00:12:36 ◼   ► developers and apps who are who are all

00:12:39 ◼   ► trying to compete for the same dollars

00:12:40 ◼   ► in the same roles in the same time and

00:12:42 ◼   ► attention and so you know back in the

00:12:44 ◼   ► olden days when you'd have like panic

00:12:46 ◼   ► and omni selling mac apps for 50 bucks

00:12:49 ◼   ► that worked in part because of what they

00:12:52 ◼   ► were and what people use max for and who

00:12:54 ◼   ► was buying max but also that worked in

00:12:56 ◼   ► part because there just weren't that

00:12:58 ◼   ► many developers doing it if you would

00:13:00 ◼   ► have had 10,000 developers trying to

00:13:02 ◼   ► make the same handful of nice consumer

00:13:05 ◼   ► high-profile mac apps you would have had

00:13:07 ◼   ► the exact same problem back then

00:13:09 ◼   ► it isn't that the market has has like

00:13:12 ◼   ► gotten stupider or cheaper or anything

00:13:14 ◼   ► like that it's that this is now the mass

00:13:17 ◼   ► market of what developers do it wasn't

00:13:19 ◼   ► you know back in 2006

00:13:21 ◼   ► most developers weren't working on mac

00:13:23 ◼   ► apps now most developers are working on

00:13:26 ◼   ► iOS and web apps and a span I think it's

00:13:28 ◼   ► I think the shift from web to iOS apps

00:13:30 ◼   ► is really pretty pretty significant and

00:13:33 ◼   ► so if you think about just that's what

00:13:35 ◼   ► so many developers are working on of

00:13:37 ◼   ► course was going to be a massive

00:13:39 ◼   ► oversupply and of course there's going

00:13:41 ◼   ► to be tons of competition and a race to

00:13:43 ◼   ► the bottom and pricing and that's not

00:13:45 ◼   ► because apples doing something wrong you

00:13:48 ◼   ► know Apple is not helping in certain

00:13:49 ◼   ► ways but they're not the cause of this

00:13:51 ◼   ► problem and you know again pragmatically

00:13:53 ◼   ► it is it is useful to think of yourself

00:13:56 ◼   ► not as somebody who all you need to do

00:13:59 ◼   ► is is ship a nicely designed polished

00:14:02 ◼   ► app and money will start flowing in but

00:14:05 ◼   ► as somebody who has to really fight like

00:14:08 ◼   ► really like work hard and fight hard and

00:14:11 ◼   ► be lean to try to attract any kind of

00:14:14 ◼   ► attention and any kind of money from

00:14:16 ◼   ► what is a very crowded hyper competitive

00:14:19 ◼   ► market and I think it's also that the

00:14:21 ◼   ► biggest trap that I know I struggled

00:14:23 ◼   ► with for years was untwist this over

00:14:26 ◼   ► this feeling of over valuing my own work

00:14:28 ◼   ► that if I spent a long time working on

00:14:31 ◼   ► something that everybody should then

00:14:33 ◼   ► sort of oh it should it somehow

00:14:36 ◼   ► intrinsically that makes it more

00:14:37 ◼   ► valuable to people right that they look

00:14:39 ◼   ► at something it's like whereas when like

00:14:42 ◼   ► when people are going to part with money

00:14:43 ◼   ► in whatever form that is like whether

00:14:45 ◼   ► that's right or I guess part with

00:14:46 ◼   ► something like their attention their

00:14:48 ◼   ► money their it they're exchanging

00:14:51 ◼   ► something for that like there they need

00:14:53 ◼   ► to be feel like they're getting

00:14:54 ◼   ► something in return and the funny thing

00:14:58 ◼   ► is I think a lot of people think that

00:15:00 ◼   ► software intrinsically should feel

00:15:02 ◼   ► valuable like as their like the classic

00:15:04 ◼   ► that oh it's it's people will spend five

00:15:06 ◼   ► dollars on a latte but they won't spend

00:15:07 ◼   ► five dollars on my app and it's like

00:15:10 ◼   ► well maybe they actually want the latte

00:15:12 ◼   ► more than they want your app like your

00:15:13 ◼   ► app may not actually be that that

00:15:15 ◼   ► valuable to them and that's why they're

00:15:17 ◼   ► they don't want to spend that money on

00:15:18 ◼   ► it's like you have to be able to wrap

00:15:19 ◼   ► your arms around what they're actually

00:15:21 ◼   ► buying with that like is it

00:15:23 ◼   ► entertainment is it productivity is it

00:15:27 ◼   ► amusement is it

00:15:29 ◼   ► are they exchanging goodwill for money

00:15:30 ◼   ► like things like when you start to get

00:15:32 ◼   ► into like I know I've

00:15:34 ◼   ► and an app with the tip jar in it or you

00:15:36 ◼   ► have patronage and overcast now like the

00:15:38 ◼   ► uric sense they are cure providing a

00:15:39 ◼   ► mechanism for people to exchange

00:15:40 ◼   ► goodwill for money is really what your

00:15:43 ◼   ► have what you're doing there and unless

00:15:45 ◼   ► you're able to really wrap your arms

00:15:47 ◼   ► around that it's hard to really like be

00:15:48 ◼   ► okay with saying like that's okay like I

00:15:50 ◼   ► do advertising because for a lot of my

00:15:52 ◼   ► apps like the app itself isn't

00:15:54 ◼   ► particularly valuable to the person it's

00:15:56 ◼   ► useful but it's not necessarily valuable

00:15:58 ◼   ► in a way that for a lot of people they

00:16:00 ◼   ► want to play we want to put money into

00:16:01 ◼   ► it directly once they used to once they

00:16:04 ◼   ► use it for a while and like it they are

00:16:08 ◼   ► willing to piss spend money but they're

00:16:09 ◼   ► not spending money for the functionality

00:16:11 ◼   ► they're spending money to be able to

00:16:12 ◼   ► express the goodwill they have towards

00:16:14 ◼   ► me for the benefit I've given them but

00:16:16 ◼   ► that's different than it being

00:16:19 ◼   ► intrinsically valuable to them because

00:16:20 ◼   ► when they started they didn't see it as

00:16:22 ◼   ► valuable they wanted it to be free and

00:16:23 ◼   ► if it wasn't free I don't think like

00:16:25 ◼   ► I've you know my pedometer a pedometer

00:16:27 ◼   ► plus plus wouldn't have sold at all or

00:16:29 ◼   ► at least in that not in large quantity

00:16:30 ◼   ► that it has you know to this point yeah

00:16:33 ◼   ► you know even as a consumer of apps now

00:16:35 ◼   ► I find myself even as somebody who has

00:16:37 ◼   ► been a proponent of paid apps for so

00:16:38 ◼   ► long and sold one for so long when I

00:16:41 ◼   ► search for something in the App Store

00:16:43 ◼   ► and I see the search results list you

00:16:45 ◼   ► know if I need if I needed something

00:16:46 ◼   ► that I'm not looking for a specific name

00:16:48 ◼   ► where I'm just looking for a specific

00:16:49 ◼   ► type of app so a pedometer or a step

00:16:51 ◼   ► count or whatever you know if I search

00:16:53 ◼   ► the App Store and the first 20 entries

00:16:56 ◼   ► in the search are all free and number

00:16:59 ◼   ► twenty one is four bucks that one

00:17:02 ◼   ► doesn't stand a chance like that's just

00:17:04 ◼   ► and that's just the reality of how

00:17:05 ◼   ► people search the App Store and and it's

00:17:08 ◼   ► it's very important that you know as you

00:17:09 ◼   ► said like to recognize that and and you

00:17:13 ◼   ► know to recognize that not every app

00:17:15 ◼   ► that Avery that every developer makes is

00:17:18 ◼   ► going to be worth a non-trivial number

00:17:21 ◼   ► of customers spending $2 on it or

00:17:23 ◼   ► whatever you know like I mean I've seen

00:17:25 ◼   ► so many apps that do things that I don't

00:17:28 ◼   ► really need you know like like so many

00:17:31 ◼   ► apps that are things like coffee timers

00:17:32 ◼   ► well you know if a coffee timer is

00:17:35 ◼   ► really good and it's free I might use it

00:17:37 ◼   ► or I can just use the built-in timer on

00:17:41 ◼   ► the device that's not as good but it

00:17:43 ◼   ► works and I think a lot of people go

00:17:45 ◼   ► through a similar kind of thought

00:17:46 ◼   ► process of you know if you if

00:17:48 ◼   ► it's such a different barrier than than

00:17:50 ◼   ► any price and and if you're if you're

00:17:53 ◼   ► looking at an app the alternative isn't

00:17:55 ◼   ► just every other app that's in the store

00:17:57 ◼   ► that does that same thing

00:17:58 ◼   ► the alternative is also just

00:18:00 ◼   ► non-consumption it's not buying the app

00:18:02 ◼   ► at all not buying any app and just going

00:18:05 ◼   ► without that role in your life and as we

00:18:07 ◼   ► get more and more and more apps in the

00:18:10 ◼   ► store which is only you know that's been

00:18:12 ◼   ► going on forever now as we get more more

00:18:14 ◼   ► apps in the store and more and more

00:18:15 ◼   ► demands for people's attention and more

00:18:17 ◼   ► more alternatives that they can do like

00:18:19 ◼   ► if they don't download your app they can

00:18:20 ◼   ► go check Twitter for a few minutes or

00:18:22 ◼   ► play a game and as we get more and more

00:18:25 ◼   ► of those things more more competition

00:18:26 ◼   ► for everything non consumption is also a

00:18:30 ◼   ► big problem and so anything you can do

00:18:31 ◼   ► to to address non-consumption to address

00:18:34 ◼   ► people just bailing out and abandoning

00:18:36 ◼   ► this this search that or this idea they

00:18:37 ◼   ► might have had that this thing they

00:18:38 ◼   ► wanted to do and going free is a huge

00:18:41 ◼   ► hit against that like if you can remove

00:18:43 ◼   ► that barrier of price upfront then it's

00:18:46 ◼   ► so much easier for people to say you

00:18:48 ◼   ► know what yeah I'll give it a try and

00:18:50 ◼   ► it's then I guess the reality is that's

00:18:52 ◼   ► how I think we've both been able to

00:18:54 ◼   ► continue in in the App Store at this

00:18:57 ◼   ► point and we've been doing it for a long

00:18:58 ◼   ► time who is I ever anecdotally it seems

00:19:02 ◼   ► like fewer and fewer smaller or lot more

00:19:06 ◼   ► independent companies and where people

00:19:08 ◼   ► are able to do it and I do you think a

00:19:10 ◼   ► lot of it is that it's a lack of

00:19:11 ◼   ► pragmatism that a lack of just like what

00:19:14 ◼   ► is it going to take to make a living in

00:19:17 ◼   ► this market and if you ultimately don't

00:19:18 ◼   ► like the answer to that if you're in

00:19:19 ◼   ► your mind you'll you only want to sell

00:19:21 ◼   ► software in like a premium App Store

00:19:23 ◼   ► it's like ok well you might need to do

00:19:25 ◼   ► something else then because that may not

00:19:27 ◼   ► exist

00:19:28 ◼   ► yeah and you need to be in the right

00:19:29 ◼   ► place at the right time if you want that

00:19:30 ◼   ► you know if if if you will not budge in

00:19:32 ◼   ► that like so right now so getting back

00:19:34 ◼   ► for a second to the Apple TV which is

00:19:35 ◼   ► getting out now the Apple TV app store

00:19:38 ◼   ► has almost nothing in it it is very very

00:19:40 ◼   ► sparse and if you are looking for

00:19:43 ◼   ► something like like so I got this Apple

00:19:45 ◼   ► TV I plugged it in set it up and I went

00:19:48 ◼   ► right to the App Store to see hey what

00:19:49 ◼   ► can I get here and I thought a couple of

00:19:51 ◼   ► basic you know Netflix HBO now whatever

00:19:54 ◼   ► and then okay let me try some games I

00:19:56 ◼   ► got this cool thing I'm in the mood of

00:19:57 ◼   ► trying new things let me go to the App

00:19:59 ◼   ► Store and try some games and I went and

00:20:01 ◼   ► I

00:20:02 ◼   ► I don't know ten bucks maybe total on a

00:20:04 ◼   ► couple of games and I didn't even think

00:20:06 ◼   ► about it because I'm in this buying mood

00:20:08 ◼   ► because I just got this new device it's

00:20:09 ◼   ► brand new has me excited and also

00:20:11 ◼   ► there's hardly anything there to buy and

00:20:14 ◼   ► of the very small number of games there

00:20:16 ◼   ► were there to buy almost all of them I

00:20:19 ◼   ► think we're paid or at least many of

00:20:20 ◼   ► them were so I had no problem spending

00:20:23 ◼   ► that money because of the context of

00:20:26 ◼   ► this isn't a tremendous App Store filled

00:20:28 ◼   ► with millions of apps most of which are

00:20:30 ◼   ► free this is a very very small App Store

00:20:33 ◼   ► that right now that has only very few

00:20:36 ◼   ► apps on it and you know that's that's

00:20:38 ◼   ► that's the reason I was able to charge

00:20:39 ◼   ► 10 bucks for Instapaper in 2008 you know

00:20:41 ◼   ► but but then I couldn't in 2009 because

00:20:43 ◼   ► the after was too full that's gonna

00:20:45 ◼   ► happen with the Apple TV also you know

00:20:47 ◼   ► if this thing takes off if this succeeds

00:20:48 ◼   ► and and it looks like it's probably

00:20:50 ◼   ► going to I mean it might take a few

00:20:52 ◼   ► years before it has like tons and tons

00:20:53 ◼   ► of Units out there but it's probably

00:20:55 ◼   ► going to succeed and if that happens or

00:20:58 ◼   ► as that happens there the App Store is

00:21:01 ◼   ► gonna be way more crowded than it is now

00:21:03 ◼   ► and it is going to get harder and harder

00:21:05 ◼   ► to sell games and apps for the Apple TV

00:21:07 ◼   ► for money once there is competition for

00:21:10 ◼   ► for that same role in people's lives and

00:21:12 ◼   ► so if you if you were gonna be the kind

00:21:14 ◼   ► of person who wanted to sell a premium

00:21:16 ◼   ► app for money

00:21:17 ◼   ► you just had a window to do that on the

00:21:20 ◼   ► Apple TV almost no one has taken up that

00:21:22 ◼   ► out that opportunity but you just had

00:21:24 ◼   ► that opportunity right now and it won't

00:21:26 ◼   ► come again on the Apple TV probably ever

00:21:28 ◼   ► you know at this like this product and

00:21:30 ◼   ► that has now done that and it probably

00:21:32 ◼   ► won't come again yeah and so you have to

00:21:34 ◼   ► wait till the next big wave and you have

00:21:36 ◼   ► to be in one of those positions where if

00:21:38 ◼   ► you're not going to to be in a if you're

00:21:41 ◼   ► not gonna be the kind of person who can

00:21:42 ◼   ► thrive in an ultra competitive

00:21:43 ◼   ► low-priced environment like the web has

00:21:46 ◼   ► pretty much always been and like the iOS

00:21:49 ◼   ► App Store is now then you have to follow

00:21:52 ◼   ► the trend and be early to things be

00:21:54 ◼   ► there on day one when new things happen

00:21:56 ◼   ► be able to be able to figure out and

00:21:57 ◼   ► guess which new things will take off

00:21:59 ◼   ► which is a hugely risky process that you

00:22:01 ◼   ► will often get wrong and it will often

00:22:03 ◼   ► go completely to waste and and be there

00:22:06 ◼   ► in those less competitive markets but

00:22:08 ◼   ► then as soon as the market becomes more

00:22:09 ◼   ► competitive you have to either adapt or

00:22:11 ◼   ► leave yeah and I think the difficulty

00:22:13 ◼   ► honestly with Apple TV and why I well I

00:22:15 ◼   ► think I agree

00:22:15 ◼   ► like the best time to sold big software

00:22:18 ◼   ► would have been like if being there on

00:22:20 ◼   ► day one my suspicion is the narrowness

00:22:22 ◼   ► of the window where there's going to

00:22:24 ◼   ► have that kind of general rush in people

00:22:27 ◼   ► being okay with buying things is narrow

00:22:29 ◼   ► enough that I'm very skeptical if it

00:22:32 ◼   ► would actually be financially successful

00:22:34 ◼   ► for most people that if they had you

00:22:38 ◼   ► know spend a lot of time made it a nice

00:22:39 ◼   ► big premium game or something like that

00:22:41 ◼   ► especially designed specifically for the

00:22:44 ◼   ► Apple TV the window in which they were

00:22:46 ◼   ► going to be able to to sell into a kind

00:22:48 ◼   ► of a premium group of people like people

00:22:50 ◼   ► who obviously were excited enough about

00:22:52 ◼   ► the product to get on day one they're

00:22:54 ◼   ► very you know they've just spent a red

00:22:57 ◼   ► for in Apple terms a relatively small

00:22:59 ◼   ► amount of money for it you know it's a

00:23:01 ◼   ► they're not nearly as expensive as a lot

00:23:03 ◼   ► of the other other products that you

00:23:04 ◼   ► know I can iPhone $700 or something

00:23:06 ◼   ► whereas this is a hundred and something

00:23:07 ◼   ► or two hundred and so that window is

00:23:11 ◼   ► going to be very narrow and so if you

00:23:13 ◼   ► are worried if your app requires that

00:23:16 ◼   ► you then have big sis that you know big

00:23:19 ◼   ► sustained sales over the next few months

00:23:21 ◼   ► my suspicion is that's going to be a

00:23:24 ◼   ► losing proposition and so that's

00:23:27 ◼   ► interesting and you know it's the Apple

00:23:30 ◼   ► TV I think will be a nice sort of much

00:23:32 ◼   ► ways like many ways like the watch it's

00:23:34 ◼   ► just an add-on to the main product that

00:23:37 ◼   ► Apple sells like which is the iPhone

00:23:39 ◼   ► it's like the iPad in many ways the idea

00:23:41 ◼   ► to watch now the Apple TV these are all

00:23:43 ◼   ► just add-ons to get di OS ecosystem that

00:23:46 ◼   ► exists for the iPhone yeah and and you

00:23:49 ◼   ► know and I think the the value that you

00:23:52 ◼   ► can get out of being there yeah I think

00:23:54 ◼   ► you make a very good point about about

00:23:55 ◼   ► that window being fairly narrow I think

00:23:57 ◼   ► how narrow it is depends on how easy it

00:24:01 ◼   ► is to develop for it and how many people

00:24:03 ◼   ► realize how quickly they need to be

00:24:06 ◼   ► developing for do they want to be

00:24:07 ◼   ► developing for it so with the iPhone

00:24:09 ◼   ► that was very very quick really because

00:24:11 ◼   ► the iPhone already had a massive

00:24:13 ◼   ► installed base there was tons of pent

00:24:15 ◼   ► demand to develop for it and people like

00:24:16 ◼   ► not the doors down to get there most

00:24:18 ◼   ► platforms don't work that way the watch

00:24:21 ◼   ► I think has has kind of fizzled out on

00:24:23 ◼   ► the watch I think is kind of at a

00:24:25 ◼   ► standstill right now I don't know of any

00:24:26 ◼   ► really interesting stuff that's happened

00:24:28 ◼   ► on the watch

00:24:29 ◼   ► last month say you know it seems like

00:24:31 ◼   ► not a lot is going on there and we'll

00:24:33 ◼   ► talk about that in future episodes I'm

00:24:35 ◼   ► sure yeah and the TV is now out but it's

00:24:38 ◼   ► starting from an installed base of zero

00:24:39 ◼   ► for a product that people are excited

00:24:42 ◼   ► about but not so excited that they're

00:24:43 ◼   ► gonna go out and like raid all the

00:24:45 ◼   ► stores and deplete all the stock on day

00:24:46 ◼   ► one so it's gonna that's gonna have a

00:24:49 ◼   ► slower build-up and so if that buildup

00:24:51 ◼   ► is slower also on the developer supply

00:24:53 ◼   ► side where fewer developers are jumping

00:24:55 ◼   ► in so soon so quickly then I think you

00:24:57 ◼   ► do have a wider window like I would say

00:25:00 ◼   ► the biggest sales day for Apple TV apps

00:25:02 ◼   ► this year is gonna be the day after

00:25:04 ◼   ► Christmas and if you are there I think

00:25:06 ◼   ► you can still sell a nice $10 game the

00:25:10 ◼   ► day after christmas in in big volumes

00:25:11 ◼   ► this year but probably not next year

00:25:14 ◼   ► let's see yeah I would say I'm more on

00:25:17 ◼   ► the skeptical side of that but I think

00:25:18 ◼   ► you're right insofar as that's a

00:25:20 ◼   ► reasonable it's going to this the next

00:25:24 ◼   ► few months will be interesting for it

00:25:26 ◼   ► and I think the Apple TV

00:25:27 ◼   ► I will ultimately develop for it though

00:25:30 ◼   ► and which is probably a good place to

00:25:31 ◼   ► wrap up is to say like I expect to make

00:25:33 ◼   ► make apps for it mostly because having a

00:25:36 ◼   ► nicely rich

00:25:38 ◼   ► it's a checkbox that I can check for

00:25:41 ◼   ► form up from some of my applications to

00:25:43 ◼   ► say like could make them just that

00:25:44 ◼   ► little bit more appealing to somebody if

00:25:46 ◼   ► someone was on the fence about

00:25:47 ◼   ► downloading my app and they're like oh

00:25:48 ◼   ► it'll work for the Apple TV awesome then

00:25:51 ◼   ► it's like that little little thing but

00:25:53 ◼   ► it's not a priority for me insofar as I

00:25:55 ◼   ► don't think it's gonna ever be a primary

00:25:57 ◼   ► driver for my business it's like same as

00:25:59 ◼   ► the watch I make watch apps for a lot of

00:26:01 ◼   ► my apps mostly just so that it's like if

00:26:02 ◼   ► someone if for the narrow group of

00:26:04 ◼   ► people for that's all they needed to go

00:26:06 ◼   ► over the edge then it was worthwhile for

00:26:08 ◼   ► me but in and of itself it's probably

00:26:10 ◼   ► not yeah and that that could be a whole

00:26:12 ◼   ► beside right there

00:26:12 ◼   ► and I I totally agree with everything

00:26:15 ◼   ► you said that I'm also I expect to to

00:26:18 ◼   ► launch Xcode for the first time to make

00:26:19 ◼   ► an Apple TV app probably this week I'd

00:26:21 ◼   ► like to see how easy it is to get

00:26:23 ◼   ► overcast or run on it but again it's

00:26:25 ◼   ► like it's it's kind of a value add to

00:26:27 ◼   ► use a business term I'm sorry it's kind

00:26:29 ◼   ► of that for overcast on iOS in general

00:26:31 ◼   ► rather than like I don't expect to make

00:26:34 ◼   ► a lot of money on the Apple TV by itself

00:26:35 ◼   ► but anyway we are running out of time

00:26:38 ◼   ► this week so we want to keep the show

00:26:39 ◼   ► nice and short so people can listen to

00:26:40 ◼   ► it quickly and don't feel overloaded by

00:26:42 ◼   ► it so

00:26:43 ◼   ► let's wrap it up this week David thank

00:26:46 ◼   ► you I guess

00:26:47 ◼   ► I don't know we never done an ending

00:26:48 ◼   ► before we're gonna have a song so what

00:26:50 ◼   ► are we gonna do

00:26:51 ◼   ► just stop probably just stop all right

00:26:53 ◼   ► thanks thanks for listening whoever's

00:26:55 ◼   ► listening to this and hopefully we will

00:26:57 ◼   ► see you again for the next episode yep

00:26:59 ◼   ► see you under the radar