00:00:00 ◼ ► Welcome to Under the Radar, a show about independent iOS app development. I'm Marco Arment.
00:00:05 ◼ ► And I'm David Smith. Under the Radar is never longer than 30 minutes, so let's get started.
00:00:14 ◼ ► know, relatively substantial changes in our sort of the things that you and I are interested
00:00:27 ◼ ► app transparency tracking or app tracking transparency, ATT, and Apple's new podcasting
00:00:34 ◼ ► sort of overhaul initiative. And there was sort of a commonality between those two things
00:00:39 ◼ ► that I think just, it just sort of stuck with me this week. And specifically, it's that
00:00:44 ◼ ► I think, app tracking transparency, which is this, in case you don't know, in iOS 14.5,
00:00:49 ◼ ► which just rolled out a few days ago, Apple's changing the way that the sort of essentially
00:01:00 ◼ ► that you cannot sort of essentially co-mingle any data about a user between multiple sources.
00:01:08 ◼ ► You can do sort of first party tracking potentially, but you can't share it. And so this comes
00:01:18 ◼ ► ad, where you're in Facebook, you see an ad for an application, you tap on it. And then
00:01:23 ◼ ► in the, you know, they go to the App Store, they download the app, they open it up, and
00:01:27 ◼ ► you can attribute that, you know, that install to that ad very specifically. And that's
00:01:32 ◼ ► something that they, Apple provides some amount of support with their SKAd network thing,
00:01:37 ◼ ► but generally they're restricting and changing that. And then on the other side, you have
00:01:43 ◼ ► the changes around podcasting and podcast subscriptions. And while sort of in the process
00:01:48 ◼ ► of rolling out Apple's new podcast subscription system, they seem to have changed or at least
00:01:54 ◼ ► now provided a mechanism by which it is possible for organizations to be in sort of a list,
00:02:01 ◼ ► have a podcast listed in iTunes, but listed in such a, sorry, in iTunes, in Apple podcasts,
00:02:07 ◼ ► but listed there in such a way that doesn't share the public feed for that podcast more
00:02:17 ◼ ► clients use to serve as she used the Apple podcasts directory as an authoritative public
00:02:24 ◼ ► directory, which has lots of benefits in terms of they do, you know, sort of quality assurance
00:02:30 ◼ ► and filtering on people who submit to the, the, the Apple podcast directory to make sure
00:02:39 ◼ ► be relatively sort of viewed as an authoritative reference. And they're changing that so that
00:02:44 ◼ ► now shows can optionally essentially not participate in that public directory sort of feature that
00:02:59 ◼ ► us in terms of if Apple ends up, if many shows end up sort of signing out or declining being
00:03:04 ◼ ► an Apple's directory, that'll affect you a lot with your overcast directory and ATT affects
00:03:09 ◼ ► me in so far as you know, a lot of my revenue in my applications is coming from advertising.
00:03:14 ◼ ► And it's a bit too early to say, but I think it's very likely that there will be a substantial
00:03:19 ◼ ► short term drop in my revenue for the next few months while people work out what they're
00:03:23 ◼ ► going to do. My hope is that eventually it'll kind of settle back up to where it was. But
00:03:28 ◼ ► who knows, like there's this very seismic change in my business. And what's strange in some
00:03:34 ◼ ► ways is like, you and I are the like the small little fish in this giant ocean that are being
00:03:40 ◼ ► affected by the waves caused by like two giant sharks fighting like we're these little minnows
00:03:43 ◼ ► swimming along and then these big sharks fighting and it's like in ATT case, it is Facebook
00:03:53 ◼ ► about this where I think Apple probably sees that, you know, the bulk of app install marketing
00:04:02 ◼ ► seems like it's being driven by Facebook. As far as I can tell, like I've been spending
00:04:05 ◼ ► a lot of time in a world that I'm not particularly familiar with, which is the like, UA, which
00:04:17 ◼ ► tell, people would say is the Facebook tool where it's this very kind of mechanized system
00:04:26 ◼ ► SDK. And so it provides metrics back on how valuable by customers to you. And so you can
00:04:31 ◼ ► essentially end up in a world where Facebook can tell you this user is going to be worth
00:04:36 ◼ ► a dollar to you, I can show your ad for, you know, 90 cents, and so you'll make 10 cents
00:04:48 ◼ ► like that at a certain point, they're losing control of, you know, app acquisition, which
00:04:57 ◼ ► argument about, you know, essentially who could control that and ATT is one of the results,
00:05:12 ◼ ► very much in the same place of feeling like them and they and Spotify are now competitors
00:05:18 ◼ ► in the podcasting space. And, you know, Apple providing things that are kind of more altruistic,
00:05:25 ◼ ► or sort of just generally public goods, maybe come be probably something more problematic,
00:05:45 ◼ ► or National Public Media, or some large organization that says they don't want to see this control
00:05:55 ◼ ► you could imagine where these large organizations are having these arguments, and the result
00:05:59 ◼ ► is a checkbox in Podcast Connect or whatever it's called, that now can have this profound
00:06:08 ◼ ► of my indie career, it's happened several times where you have to, hey, I think there's
00:06:23 ◼ ► affect us profoundly. And some of these things will just happen to us and we're just like,
00:06:39 ◼ ► have to do and roll from it. And I just kind of feel for you because it's like, it's not
00:06:42 ◼ ► your fight. It's not nothing to do with you. But you're, it's not, you're affected by it
00:06:48 ◼ ► Yeah, I feel like, like this reminds me a lot of back, geez, probably 10 years ago now,
00:06:54 ◼ ► it was a while ago, when we started seeing the mostly widespread disappearance of useful
00:07:01 ◼ ► public APIs to web services. You know, a lot of us, for example, were building apps and
00:07:12 ◼ ► fine for years. But then it started to become, I would say, strategically costly to them,
00:07:20 ◼ ► or at least, or possibly even strategically abused by their competitors. One of the greatest
00:07:36 ◼ ► you could basically import your Twitter social graph. And it was one of those like, find
00:07:39 ◼ ► your friends on Twitter, now on Instagram kind of things. And Instagram grew so quickly
00:07:44 ◼ ► from that, and so successfully, and they so like, successfully basically took Twitter's
00:07:55 ◼ ► really locking down their API and shutting it down. And they cut Instagram off from that
00:08:05 ◼ ► Twitter, Instagram, and then later, you know, when Facebook bought them, they continued
00:08:12 ◼ ► their API back then, or change the terms or whatever else, they were doing it to prevent
00:08:19 ◼ ► people like Facebook from taking advantage of them. But it impacted all the small developers
00:08:32 ◼ ► fighting kind of wrecked that world. And, and we saw like, you know, the great, the great
00:08:38 ◼ ► like web 2.0 trend of all the public services or all the big services having public API
00:08:54 ◼ ► be very limited and, you know, only give people like these kind of accessory purposes that
00:09:11 ◼ ► You know, it's, it's frustrating. The app tracking transparency thing, I think is multifaceted.
00:09:17 ◼ ► You know, that is Apple trying to preserve privacy, but they also have a monetary incentive
00:09:24 ◼ ► to do so. And so it's, it's a little uncomfortable because when, when Apple execs talk about
00:09:33 ◼ ► them like, I believe they truly do believe that. And that is a major reason to do this,
00:09:38 ◼ ► but it's uncomfortable that Apple also financially gains from limits they place on this. I think
00:09:46 ◼ ► it's absolutely true. You mentioned a few minutes ago, you mentioned that like the Facebook
00:09:52 ◼ ► system and network of like app install ads and everything largely has taken over distribution
00:09:57 ◼ ► control from the app store and Apple really doesn't like that. Apple also tried to build
00:10:02 ◼ ► their own thing, app store search ads, which I funnel lots of money into kind of a scary
00:10:07 ◼ ► amount that I shouldn't ever really look at the total for. But, and the reason why Apple
00:10:13 ◼ ► made app store search ads was in part to address that demand, but also because Apple is now
00:10:23 ◼ ► it was from about Bill Gates. And it was like, it was like somebody's mother describing Bill
00:10:27 ◼ ► Gates and as like the kind of person who would come to your house for dinner and say, I'll
00:10:32 ◼ ► take all the potatoes. Thank you. And that's becoming Apple now. Apple wants a piece of
00:10:40 ◼ ► every single market that they have any control over whatsoever through the funnel of iOS
00:10:51 ◼ ► and all the apps, and they will not be satisfied until they get it. And they seem completely
00:10:59 ◼ ► maybe blind to the problems of antitrust pressure and everything that result from this. But
00:11:05 ◼ ► regardless, when Apple sees an area where someone else is making money in the app store
00:11:09 ◼ ► and they're not getting their cut, they move into the area in a big way so they can get
00:11:13 ◼ ► their cut. And that's really destructive and it's a really bad look. And they don't even
00:11:20 ◼ ► need the money that badly. You know, like, destroying some industry, you know, for them
00:11:24 ◼ ► to make 0.1% more revenue is also not a great look. And so the app tracking transparency
00:11:29 ◼ ► stuff definitely falls into this to some degree. You know, they really don't want other ad
00:11:35 ◼ ► networks and other big data brokers like Facebook making all this money on this app install
00:11:45 ◼ ► other crappy ad providers that are in a billion, you know, crappy apps and crappy games and,
00:11:56 ◼ ► There are legitimate privacy concerns to what they're doing as well. So that one is, I think,
00:12:01 ◼ ► a little less cut and dry. The podcast thing though, I feel really just sour about that
00:12:10 ◼ ► because what they, so you know, there's two changes they made. Number one, they launched
00:12:14 ◼ ► a subscription podcast payment option in the app that basically works just like the App
00:12:33 ◼ ► other app wants to do that, we can't without giving Apple 30%. Which means we have to either
00:12:54 ◼ ► and run this whole program with no money which is kind of impossible because this kind of
00:12:58 ◼ ► program requires a lot of administration. So they've now created this additional market
00:13:03 ◼ ► for like paid directly into apps podcast services that we literally can't compete with them
00:13:08 ◼ ► on because of their own App Store policy. And they know it. And they did this to compete
00:13:16 ◼ ► is making a bunch of money that Apple wants. But it also affects everyone else who's making
00:13:21 ◼ ► a podcast app because now there's this expectation now that the two biggest podcast apps are
00:13:26 ◼ ► going to have these paid options for publishers to sell podcasts, sell premium podcasts right
00:13:33 ◼ ► in the apps. Now every smaller app can't compete. And it's because these two big companies
00:13:38 ◼ ► like you were saying like these two big sharks are fighting with each other trying to take,
00:13:56 ◼ ► built on for forever basically except like a few of the very biggest ones that were exceptions
00:14:06 ◼ ► have heard of queries the iTunes API for directory and filtering. And it's important you know
00:14:12 ◼ ► because not only does it keep out things like you know low quality search results, things
00:14:17 ◼ ► like you know spam and illegal copies of other people's podcasts, but it also prevents us
00:14:21 ◼ ► from having to deal with things like illegal content. You know certain content is illegal
00:14:25 ◼ ► in certain countries. Hate speech is illegal or at least in very poor taste almost anywhere.
00:14:40 ◼ ► maintained that API you know kind of like hands-off basically and kind of quietly allowed
00:14:52 ◼ ► disappointing when that changes and that seems to be the result of like literally I think
00:15:02 ◼ ► that change. And again it's like some company complains to Apple that their needs aren't
00:15:35 ◼ ► team hasn't seen yet. Plus it saves you time on future maintenance and features released
00:15:49 ◼ ► RevenueCat handles all the headaches of building in-app purchase infrastructure and believe
00:15:52 ◼ ► me I've built it there are headaches. So you can get back to building your app. With support
00:15:57 ◼ ► for iOS, MacOS, Android and Stripe, RevenueCat makes it easy to verify subscription status
00:16:06 ◼ ► in-app purchase model from a simple to-do list app to complex cross-platform subscriptions.
00:16:12 ◼ ► They have SDKs for iOS, iPad, watchOS, Android, React Native, Flutter, Cordova, Unity and
00:16:18 ◼ ► MacOS Catalyst and RevenueCat has a free tier for side projects. Great for indies out there.
00:16:23 ◼ ► It's free until you ship even for the biggest apps so you can spend time building your app
00:16:31 ◼ ► Yes. So I use RevenueCat for all of my subscription management so in WidgetSmith and WatchSmith
00:16:36 ◼ ► and I got to say it does exactly what it says on the tin. It works great and I mean when
00:16:41 ◼ ► last year WidgetSmith had its giant sort of moment in the sun and sort of subscriptions
00:16:48 ◼ ► were much higher than I was expecting. RevenueCat scaled with it perfectly. They handled it
00:17:06 ◼ ► Yeah. I don't know anybody who's excited to build this stuff themselves. This is definitely
00:17:15 ◼ ► started for free. That's RevenueCat.com to get started for free. Our thanks to RevenueCat
00:17:33 ◼ ► house ads and there's no tracking anywhere and so that doesn't affect me at all. Although
00:17:37 ◼ ► I recognize that's a special case and that many apps are affected by this including yours.
00:17:41 ◼ ► The podcast changes so far it's not that big of a deal. So far it's you know a very small
00:18:02 ◼ ► at 0.1% of queries have a missing feed URL. So so far it's not that bad but it could become
00:18:18 ◼ ► is you know what it was it was not wise to rely on Apple's benevolence for all this time
00:18:24 ◼ ► because Apple has Apple has been a wonderful benevolent steward of the open world of podcasting
00:18:34 ◼ ► it's hungry and it's the giant of services revenue or at least potential services revenue
00:18:41 ◼ ► and this is an area of Apple where we can no longer trust them to do things that aren't
00:18:47 ◼ ► really slimy blatantly for money because they keep doing it over and over again like they
00:18:53 ◼ ► keep selling out their user experiences their their kind of incentive cleanliness and things
00:19:01 ◼ ► all in the name of services revenue and that's just going to keep happening. So I think it's
00:19:16 ◼ ► try as much as possible which I know is hard but to try as much as possible to keep a bit
00:19:20 ◼ ► of distance. So you know for me I'm not going to launch my own paid program even even if
00:19:26 ◼ ► the in-app purchase stuff was solved which it isn't and even if I was allowed to compete
00:19:42 ◼ ► this giant payment program and and make deals with every single podcaster individually and
00:19:46 ◼ ► everything I'm also prohibited by in-app purchase policy from integrating anybody else's system.
00:19:59 ◼ ► can pay each other and I probably can't integrate it in my app because Apple will probably reject
00:20:04 ◼ ► it for not using their in-app purchase system and I probably can't use their in-app purchase
00:20:10 ◼ ► So I'm just not going to do this for now and I'm not going to have any kind of competing
00:20:26 ◼ ► compatible with where they just you know they give you like a private URL that you can subscribe
00:20:29 ◼ ► to like I'm fully compatible with that and there are ways that I can make that even better
00:20:33 ◼ ► and so I'm going to focus on that kind of thing and being being the place for free podcasts
00:20:38 ◼ ► and and the open world of podcasting and I'm going to reduce and maybe someday eliminate
00:21:16 ◼ ► and that it isn't a situation where it's like wishing that it was a different way or being
00:21:22 ◼ ► like well it was like this in the past and now it's different and kind of getting stuck
00:21:44 ◼ ► a world where in the past like for up tracking transparency if it reduces the sort of the
00:22:02 ◼ ► do but I know we'll have you know a financial cost associated with it but it's like that's
00:22:21 ◼ ► by inaction in some ways by not showing the ATT prompt you know my users are having presumably
00:22:28 ◼ ► and hopefully having you know a slightly more private experience online which is great and
00:22:39 ◼ ► that being too reliant on any one thing in terms of in the ATT case it's a revenue model
00:22:46 ◼ ► or in the case of the podcast thing it reminds me just about in general with APIs or sort
00:22:51 ◼ ► of third party things that we're reliant on it could be a library it could be an API it
00:22:56 ◼ ► could be anything that it's like being too reliant or too sort of bought into one thing
00:23:09 ◼ ► be it can be you know sort of the degree to which you are stuck into one particular thing
00:23:34 ◼ ► and now I have a meaningful amount of my income coming from things like the subscriptions
00:23:54 ◼ ► 40% drop in that then that's a pretty profound impact whereas now I don't overall basis
00:24:00 ◼ ► it'll be you know more muted it'll be something that I can sort of accommodate more specifically
00:24:07 ◼ ► and the thing that's I think too it goes along with a bit of acceptance is when I think
00:24:11 ◼ ► about Apple making their moves and that well I can sort of have kind of just sort of like
00:24:16 ◼ ► emotional or personal opinions about is it the right thing is it the wrong thing I very
00:24:20 ◼ ► much understand why they're doing what they're doing and it's nice in some ways to have
00:24:41 ◼ ► that Apple cares about itself and it's like well but if they didn't if Apple cared about
00:24:45 ◼ ► developers more than they cared about themselves or their customers would lead to a circumstance
00:24:51 ◼ ► that would likely not be as good in the long run that many of the situations that if Apple
00:25:07 ◼ ► it loses the ability to affect the change it wants it is bending over to serve too much
00:25:11 ◼ ► to accommodate things and ultimately the platform would suffer and I think it's a reasonable
00:25:20 ◼ ► it does not exist as a charitable organization does not and like at this nonprofit that exists
00:25:31 ◼ ► serve the organization to its own principles but it is certainly something that goes along
00:25:39 ◼ ► work in their own in their own self-interest and the mess the best I can sort of diversify
00:25:48 ◼ ► interests is going to put me in a better place and then trying to do something that is going
00:25:54 ◼ ► to be you know sort of antagonistic or service to be being in be being in that conflict like
00:26:06 ◼ ► make sense to me I'd rather just be my little minnow swimming along in the ocean and sometimes
00:26:13 ◼ ► fights with these big companies but it's like I'll just do my best to just keep swimming
00:26:39 ◼ ► and basically devote you know hire some lawyers and basically devote yourself to like sticking
00:26:44 ◼ ► a finger in Apple's side or you know presenting yourself at all these like congressional or
00:26:54 ◼ ► I want to make apps and I want to you know do my thing over here and I and I also don't
00:27:00 ◼ ► think there's anything wrong with the strategy of avoidance you know like when when I decided
00:27:10 ◼ ► know at that time this was pre-serial podcasts were a pretty good business but they weren't
00:27:17 ◼ ► like a mainstream massive thing yet they it was nowhere near like as as hot as they are
00:27:28 ◼ ► I think right now I have an actual tendency to go to areas that are underserved because
00:27:33 ◼ ► frankly I don't like like heated competition and I don't like entering super hot markets
00:27:39 ◼ ► where a lot of big companies and VC people are throwing a bunch of big money around I'd
00:27:48 ◼ ► and when I started making a podcast app that was a smaller pond it no longer is but and
00:27:53 ◼ ► I have no intention of leaving this business but like I think there's nothing wrong with
00:27:57 ◼ ► taking that strategy of like going where there's not a bunch of turbulence from big companies
00:28:02 ◼ ► and big money because that's that's a that's just you're playing with fire at that point
00:28:17 ◼ ► heat and turbulence and competition or whether you're much happier kind of you know flying
00:28:34 ◼ ► in a sense of if you were trying to be a venture backed company you need to be in the area
00:28:40 ◼ ► that has that like is the next big thing right that that's what you're aiming for if you're
00:28:55 ◼ ► be the thing that is solid and reasonable and interesting and compelling and intellectually
00:29:00 ◼ ► stimulating but is just going to be a nice comfortable like interesting space to explore
00:29:19 ◼ ► that is calm but not dead but I'd much rather roll that roll that die I guess my metaphors
00:29:28 ◼ ► are falling apart here but I'd much rather try to find that kind of thing than jump into