The New “App”

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People think about apps differently than they used to. For a long time, applications have been a pretty thick layer in our digital sandwich: we paid lots of money for them and expected them to do big things. Those apps still exist: Photoshop, Visual Studio, Word.

But this weekend I bought three apps and paid a combined $1.98 for them: an iPad game for my kids, a movie finder app and an alarm clock. That’s a new way to think about apps and it seems to be a lot more like what we used to call content: these apps are cheap (or even free) and our relationship with them is transient, just like it is with a music video or a magazine.

The quintessential embodiment of this idea is, of course, the app store (slash app marketplace) where we literally shop for apps in the same place that we buy TV shows and music and movies and where the apps are cheap (enough to be expendable): if you scan the top 200 paid apps for the iPhone, only a handful are priced at more than two dollars and only one, the most expensive, costs 9.99. And those are the paid apps! Even more content-like is the arsenal of ad-supported apps and the emerging advertising networks which support them. The mobile advertising market appears to be growing so quickly that even possible market losers are seeing astonishing success, at least according to Google’s Jason Spero who said “if we are losing share [to Apple], this market is growing faster than any one we’ve seen.”

So far this is mostly a mobile phenomena. Arguably, that’s at least partially driven by necessity: mobile browser are slow and awkward. Tasks that are well served by a webpage on my desktop are better served by an app on my phone. It’s nice to have an experience that is customized for a device and even nicer to pre-download all of the UI for that experience in the form of an app. 

On the other hand, a curated app store is such an appealing model that, necessity or not, it is almost certainly on it’s way to a desktop near you. There’s little doubt Microsoft (and maybe even Apple) will extend the app marketplace experience to the desktop in the near future. Google’s already created the app marketplace for web apps (sold mostly through monthly subscriptions or supported by ads—once again, sounds a lot like content). Frankly, I don’t think that Photoshop is going away anytime soon but Office Web Apps are free today and presumably ad driven tomorrow.

What does this mean for developers?

I think about this a lot (as I’m sure you do). Change creates opportunities and this is an exciting time for us. It’s an amazing chance to be very creative (in the “create something” sense of that word). Here are the things that I’m thinking about:

First, you’ve just become very popular. “Apps” (in the way we’ve talking about them here) are making their way under the media umbrella. Moving into that ecosystem may come with some growing pains, but media has always made it’s money on volume. The margins are different and models will need to change, but ultimately the thing you know how to do (build great apps) matters more tomorrow than it does today.

Second, you need be platform agnostic. We all claim to be this, but most of us are pretty cozy somewhere. Maybe we’re looking at some platform convergence in the not-so-far-off future (HTML5?), but presently we’re dealing with a lot of divergence. When apps are content, they need to span across multiple devices and platforms just like other media does. You can’t afford to dismiss half of your market because of divergent technologies anymore than Radiohead can release vinyl-only albums.

Third, you need to think like a producer (not just an engineer). Don’t get me wrong, the world needs great engineers—so if that’s you then stay the course. But where the guy in charge of “software” is an architect, the person with a vision in the “app” world might be called a producer. When it comes to traditional applications (and infrastructure), the high order bit is stability (like a building). The success of an content-like app, on the other hand, is measured by its impact and its “production value.” Our love affair with an app may be short lived but it needs to start with love at first site. Creating that kind of impact comes from seeing the bigger picture and understanding the path to get there.

Well, there you have it. It’s a bright future for those of us who make apps: better software, more of it and in more places. 

4 Comments

Kurt Brockett / OCT 12 2010

Great thoughts throughout but I think there are two things that stand out to me.

1) That the “app store” needs to come to the desktop/laptop environment soon. Even if that’s just a UI layer to run iPad/WP7 apps and a store to purchase the experiences.

2) Agree 100% on the producer comments in the last paragraph. We need hardcore engineers and designers. Now that non-tech people are coming into the “app world” though there is an extreme need for people who can speak both languages. “Producing” the experience from the client onboarding to the final feedback loop with the market is extremely important. Don’t convolute the conversation about technology with people in the room who simply don’t care….change the message to feed their needs/wants.

Sounds like we’re all in for exciting times…

Raumornie / OCT 13 2010

Along with the game changing desirability of apps, comes the difficulty in getting noticed and getting paid. If the top apps are all only a buck or two (and we as developers get 70% of that) it’s hard to put a lot of time into making them, which can make it hard to get something that’s worth noticing. On top of that, without some kind of promotion from the author, it’s hard for our app not to get lost in the sea of others that will be added the same day, much less within a week or two. Any thoughts on how to keep the ‘production value’ and not go broke, burn out, or treat your time as worthless?

Silverlight Cream for October 13, 2010 -- #967 / OCT 13 2010

[...] Robby Ingebretsen never wastes our time, so check out his latest post: The New “App” Sara Summers has an interesting post up that could apply to other dev as well, but she has it [...]

Robby Ingebretsen / OCT 15 2010

@Raumornie. Keeping production value high and costs low is, without a doubt, a big (the biggest?) challenge of the “new app” model. In my business, we attack by being pretty aggressive about managing overhead but I don’t think that’s going to be enough going forward. A lot of this probably comes down to making good decisions about talent and good market decisions as you choose your app.

Also, it’s worth mentioning that not every app needs to be 99 cents. There are compelling apps that are worth the 10x 20x that. If you look at the top grossing apps (as opposed to the most downloaded) in the iPhone store, there are typically 3 or 4 that are priced at that level. That’s still cheap compared to something like office, but it’s much easier to recover your costs when your priced at that level. Obviously, you limit your market. It’s not an impulse (content-like) decision anymore for someone to buy the app, but if the app is one where the consumer can have a longer, deeper relationship with it then I think you can get them to see the value.