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This Week in Apps: French developers sue Apple, time spent in apps grows, Instagram adds NFTs

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
Global app spending reached $65 billion in the first half of 2022, up only slightly from the $64.4 billion during the same period in 2021, as hypergrowth fueled by the pandemic has slowed down. But overall, the app economy is continuing to grow, having produced a record number of downloads and consumer spending across both the iOS and Google Play stores combined in 2021, according to the latest year-end reports. Global spending across iOS and Google Play last year was $133 billion, and consumers downloaded 143.6 billion apps.
This Week in Apps offers a way to keep up with this fast-moving industry in one place, with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and much more.
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Top Stories
Mobile users are spending 4-5 hours per day in apps
Image Credits: data.ai
Looks like we’re all still addicted to our apps! A new report this week from data.ai (previously App Annie), found that consumers in more than a dozen worldwide markets are now spending four to five hours per day in apps. While the daily time spent in apps varies by country, there are now 13 markets where users are spending more than four hours per day using apps. These include Indonesia, Singapore, Brazil, Mexico, Australia, India, Japan, South Korea, Canada, Russia, Turkey, the U.S. and the U.K.
And, in three of those markets — Indonesia, Singapore and Brazil — mobile users are spending more than five hours per day in apps.
While the growth in app usage has slowed a bit from the second quarter in 2020, it’s worth noting that two years ago was the height of COVID lockdowns, which drove app usage to spike across all categories as users worked, shopped, banked, gamed and studied, and attended meetings, school and events from home. If anything, that means the slowdown in growth seen in a couple of the markets is only representative of a normalizing of trends, not a larger decline.
And some markets saw significant growth in app usage over the past two years. In the second quarter of 2020, Singapore users were spending 4.1 hours in apps. Now that’s grown to 5.7 hours. In Australia, users went from 3.6 hours to 4.9 hours from Q2 2020 to Q2 2022. Both represent a 40% rise in time spent.
French iOS developers sue Apple over App Store fees
Image Credits: TechCrunch
Apple is facing another antitrust lawsuit over its App Store fees, this time filed by a group of French iOS app developers who are suing the tech giant in its home state of California. The plaintiffs are accusing Apple of anti-competitive practices in allowing only one App Store for iOS devices, which gives it a monopoly in iOS app distribution and the ability to force developers to pay high commissions on in-app purchases.
The complaint argues that these commissions, on top of Apple’s $99 annual developer program fees, cut into developers’ earnings and stifle innovation — and yet developers aren’t permitted to offer alternative payment methods per Apple’s App Store rules, nor can they distribute their apps to iOS users outside of the App Store, despite Apple allowing this on Mac computers.
The case is now one of several antitrust legal battles Apple is facing, including the high-profile lawsuit with Fortnite maker Epic Games, which is under appeal, and another by alternative app store Cydia.
Developers involved in the class action include Société du Figaro, the developer of the Figaro news app; L’Équipe 24/24, the developer of L’Équipe sports news and streaming app; and le GESTE, a French association comprised of France-based publishers of online content and services, including iOS app developers.
Of note, the case is being led by U.S.-based Hagens Berman law firm, which last year won a $100 million settlement against Apple over App Store policies and recently filed a $1 billion case against Apple over antitrust issues with Apple Pay. The lawyer involved also previously secured a $560 million settlement against Apple regarding e-book price-fixing and a $90 million settlement on behalf of Android developers. In France, Paris-based antitrust lawyer Fayrouze Masmi-Dazi is helping manage the claims.
New data on in-app subscriptions shows the first month is key

Subscription management service RevenueCat took a deep dive into more than 10,000 subscription apps across iOS and Android to see how subscription renewal rates stacked up. It found that monthly subscriptions had a median first renewal rate of 56%, which would increase over time. In other words, customers who didn’t get value from the app would churn in the first month — an indication of how important it is to convince users of that value in their first days using the service. In subsequent months, renewals were higher — 75% or 81% for the second and third months, for instance.
The company analyzed its own customer base data for the analysis, but notes it’s not showing all renewals on RevenueCat, as that would bias the data toward larger customers, like VSCO. Instead, it looked at the median of each individual app’s renewal rates.
In addition, RevenueCat developer advocate David Barnard pointed out that a lower renewal rate may not necessarily be a bad thing, depending on the business. For instance, if the developer was acquiring users organically at a low cost, a lower rate could be better than a higher renewal rate with expensive customer acquisition costs.

On the @RevenueCat blog today, my colleague Traci shares some benchmarks around monthly subscription renewal rates from 10k+ apps. With the dam finally (!!!) broken, we’re hoping to publish benchmarks more regularly from here on out. https://t.co/1BqTLFU6b1
— David Barnard (@drbarnard) August 2, 2022

Weekly News
Platforms: Apple
Apple is expanding its App Store ads. The company previously offered two ad slots, on the main Search tab and in the Search results. The new ad slots will be available on the App Store’s Today tab and at the bottom of individual app pages in the “You Might Also Like” section.
Bloomberg reported that iPadOS 16 will be delayed about a month as Apple works on its multitasking features. The report says this would put the release in October, alongside macOS Ventura.
A new report indicates iOS has lost 4% of ad spend market share since the launch of ATT, which makes targeting advertising more difficult for iOS developers. Its share dropped from 34% in April, down 4% YoY according to Adjust.
Digiday reports Apple may be building its own demand-side platform, based on a job posting looking for a senior manager for a DSP in its ads platform business. Apple’s DSP may be focused on serving ads on its own properties, like the App Store, but the company declined to confirm details.
Platforms: Google
Google revealed the finalists for the Indie Games Festival, which highlights some of the best games on Google Play. This year, the company is hosting the Festival in South Korea, Japan and Europe for local developers on September 3. At the European finals, Google will also reveal the 2022 class joining the Indie Games Accelerator, a program that provides indie game devs with training and mentorship.
Google offered a guide to Android developers as to how to support predictive back gestures, as it’s making an early version of the UI available for testing with Android 13, Beta 4.
E-commerce
Facebook’s live shopping feature is shutting down on October 1 to shift the company’s focus to Reels. After this date, users will no longer be able to host new or scheduled live shopping events, but they’ll still be able to use Facebook Live for other live events — but won’t be able to create product playlists or tag products in those streams.
Fintech
Coinbase partnered with BlackRock, which oversees $10 trillion in assets, to provide its institutional clients with access to cryptocurrency.
Starbucks Rewards, the coffee company’s loyalty program that doles out perks for customers’ purchases, will expand to include NFT rewards as part of a broader web3 push. The company said it’s being advised by Starbucks Mobile Order & Pay architect Adam Brotman on the effort, where NFT rewards will translate into exclusive content and “one-of-a-kind” experiences.
The SEC is probing trading app Robinhood’s compliance with short selling rules. The SEC has been investigating since October 2021 and requested additional info from the company in Q2 2022. Robinhood also announced headcount reductions of 23% after posting a $295 million quarterly loss. In addition, New York’s State Dept. of Financial Services fined Robinhood’s crypto unit $30 million for violating anti-money laundering and cybersecurity regulations.
An exploit in the Slope mobile wallet was possibly to blame for a major network attack that saw thousands of wallets drained of millions of dollars.
iOS 16 beta 4 added support for Apple Pay in non-Safari browser apps including Chrome, Firefox and Edge, likely in response to the EU’s Digital Markets Act.
Social
Image Credits: Instagram
Instagram expanded support for NFTs to more than 100 countries in Africa, Asia-Pacific, the Middle East and the Americas after first launching a test of the new feature in May. Users will be able to connect their digital wallet, and share NFTs to the Feed, Stories or in messages. They can also automatically tag creators and collectors for attribution. The feature relies on Coinbase Wallet and Dapper integrations and the Flow blockchain.
Instagram head Adam Mosseri is temporarily moving to London to work from Meta’s King Cross offices as the company rethinks how to shape its plan to take on TikTok with Reels.
TikTok is on track to overtake Facebook in influencer marketing spend in 2022, and will overtake YouTube by 2024, per an analyst report. However, Instagram this year will still capture 3x the influencer marketing dollars as TikTok, or $2.23 billion versus TikTok’s $774.8 million.
The Washington Post reported video entertainment app Triller failed to make promised payments to a number of Black creators. Triller denied the claims.
Discord announced it will finally bring its Android app into parity with its iOS counterpart. The new Android app has been rebuilt with React Native, which will allow it to expedite new feature releases and bug fixes.
Pinterest missed on earnings and delivered zero user growth in its most recent quarter — it’s stuck at 433 million MAUs. The company cited a combination of factors for its issues, including the lingering impacts of the pandemic, reduced traffic from search engines, the rise of TikTok and — like many companies reliant on digital advertising, the broader economic environment. Still, the stock popped on the news (up 20% after hours) as revenue was close to expectations ($664.9 million) and the company was praised by new investor Elliott Investment Management.
Pinterest also began testing a new app, Shuffles, for collage-making and leaderboards. But the app, which includes image cut-out features and animation, requires an invite for the time being.
A top anonymous social app, NGL, which hit the top of the App Store earlier this summer, was forced to adjust its app to stop tricking users into thinking they had received messages from friends, when really a bot was delivering them. Both it and rival Sendit also changed their subscriptions to include more features than just “hints” about who was sending the messages.
Dating
Match Group said Tinder CEO Renate Nyborg is leaving after less than a year and it’s reorganizing the app’s management team after disappointing earnings. It also said it’s not moving forward with plans for Tinder Coins, its virtual currency, nor its plans for a dating metaverse. The company wanted to characterize this stoppage as merely a pause, but did not offer any sense as to if or when it would revisit these ideas. Instead, the company spoke of plans to introduce shorter-term subscriptions on Tinder while it tries to figure out why it couldn’t convince new people to try dating apps.
TikTok-style dating app Desti launched to match up users by fav date destinations, initially in its debut market of Austin.
Messaging
Kakao blamed Google’s new payment policies for a decline in the number of emoji subscription purchases on the messaging app KakaoTalk. The figure dropped by a third over the year, the South Korean app maker said in its quarterly earnings call Thursday.
Google is merging its Meet and Duo apps. Duo is being rebranded as Meet (the mobile app will be updated with the new branding). This will include features from both of the apps. Meet will be called Google Meet (original) and will be eventually phased out in favor of the new Meet. Not confusing at all!
Brazilian prosecutors asked WhatsApp to delay the launch of the Communities feature in Brazil until January in order to avoid spreading misinformation about the October election.
Streaming & Entertainment
Image Credits: Spotify
Spotify updated its app to address a long-standing user complaint with music playback — but it’s asking customers to pay for the fix. The company announced it will introduce a separate Play Button and a Shuffle Button at the top of albums and playlists to make it easier to play the music the way you like. This replaces the combined button available before. However, the new button is only being offered to Spotify Premium subscribers, despite arguably being a UI/UX issue that should be available to all.

Spotify wants users to pay for separate ‘Play’ and ‘Shuffle’ buttons

Clubhouse began beta testing a new feature, private communities called Houses, which allow a group of friends to hang out, catch up, hop from room to room and more. The Houses can be kept private and closed or users can each nominate a few friends to join.
Spotify’s biggest playlist is getting its own video podcast. The company said Brandon “Jinx” Jenkins, the podcast host of “Mogul” and “No Skips,” will host the new “RapCaviar Podcast.” The new video podcast will explore the rap genre and include panels of guests.
SoundCloud announced it was laying off 20% of its global workforce due to the challenging economic environment. Staff in the U.S. and U.K. will be informed if they’re impacted.
TikTok has been filing “TikTok Music” trademarks in global markets, suggesting the company is considering a launch of some sort of music streaming service similar to its existing service in select markets known as Resso.
Gaming
Image Credits: Sensor Tower
A new report indicates most mobile gaming genres saw revenue declines in the U.S. during the first part of the year. According to Sensor Tower, Arcade and Tabletop games were the only categories with revenue growth. Arcade was the fastest growing genre, with player spending up 14.8% year-over-year to approximately $176 million. Top games included Clawee, Gold & Goblins and Idle Mafia. Tabletop grew 1% YoY to $388.8 million. However, in terms of revenue, Puzzle was the largest with $2.3 billion, down 8.8% YoY. It was followed by Casino ($2.2 billion) and Strategy ($2 billion). Gaming downloads also declined 2.5% YoY to 2.4 billion.
Apple Arcade added a handful of new games to the service, including the popular Jetpack Joyride, as well as Amazing Bomberman, My Talking Tom+ and Love You to Bits+. The company also recently pulled 15 games from the subscription service.
Blizzard and NetEase scrapped plans for a World of Warcraft mobile game after a disagreement over financial terms for the title, Bloomberg reported. NetEase disbanded a team of more than 100 developers tasked with creating content for the game — only some of whom were given internal transfers.
Amazon’s cloud gaming service, Luna, which allows users to play on mobile, tablet, PC or Mac, now supports Samsung Gaming Hub on Samsung’s smart TVs and monitors.
Transportation & Travel
Uber partnered with the Berlin-based travel service Omio in order to test train and bus bookings in its U.K. app. Omio’s inventory includes more than 1,000 transport providers.
Utilities & Productivity
Google Maps and Search apps now allow merchants to label their businesses as “Asian-owned,” following similar additions that allowed labeling businesses as Black-owned, Latino-owned, veteran-owned, women-owned or LGBTQ+-owned.
Microsoft launched a new Outlook Lite app for low-powered Android phones aimed at users in emerging markets.
Government & Policy
The European Commission is investigating Google Play’s policies over possible antitrust issues, according to Politico. Specifically, the investigation is looking into billing terms and developer fees, the report said.
Security & Privacy
Security researchers found an error in more than 3,200 mobile apps, which would allow them to take full or partial control of Twitter accounts. The names of impacted apps have not yet been disclosed.
A ruling by European Union’s top court may have major implications for online platforms and apps that use background tracking and profiling to target users with behavioral ads or for personalizing content. It set a precedent that even this inferred data derived from things a company learned about a user could be considered personal data.
Funding and M&A
Dating app Desti raised $1 million in early-stage funding in July at a $5 million valuation. The company also makes a related app for friends, Besti.
Uber to sell stake its 7.8% stake in the food delivery app Zomato for $350 million+ after taking a $707 million loss on the deal in H2 2022.
Locket, a popular app that lets you post photos to your friends’ homescreens, raised $12.5 million in seed funding from OpenAI CEO Sam Altman, Sugar Capital, Costanoa Ventures, along with Instagram co-founder Mike Krieger and Quora CEO Adam D’Angelo.
Downloads
Banish

A new app for iPhone users can help you browse the web without being constantly bothered by pop-up panels that beg you to use the company’s app instead. The app, called Banish, is a Safari extension that helps remove the “open in app” banners from various websites and other popups that block content across a number of sites, like Reddit, TikTok, LinkedIn, Twitter, Quora, Medium, Yelp and some Google sites, to name a few.
While there are a number of similar Safari extensions for blocking cookie banners and ads, the scourge of the “Open in App” banners is often not addressed by existing solutions.
To use Banish, you’ll first install the app to your iPhone, then configure it in the Settings. This involves a few key steps for Banish to function properly. There are two places where Banish needs to be enabled, under Safari Extensions — you need to toggle on the switch next to Banish under “Allow These Content Blockers” and “Allow These Extensions.” Then you need to set the “Allow” permission to “All Websites” below. You can read more about Banish here on TechCrunch or download it from the App Store for $1.99.
 

This Week in Apps: French developers sue Apple, time spent in apps grows, Instagram adds NFTs

Top anonymous social app NGL forced to stop tricking its users

A popular anonymous social app that was misleading its users with fake messages has been forced to change. The top-ranked app NGL, which became the No. 1 app on the U.S. App Store in June, quietly rolled out an update yesterday that sees it now informing users when they receive messages that aren’t from their friends — as users had been previously led to believe. Before, NGL sent these fake messages as a means of creating engagement, then charged for “hints” about the message’s sender.
The app has also now lowered its subscription pricing, which promises to reveal details about who is behind the anonymous messages.
NGL is one of a handful of anonymous social apps that had recently shifted their attention to Instagram after Snapchat cracked down on apps of this nature using its developer tools, as part of Snap’s broader efforts to reduce harm to minors.
To use NGL, users would tap a button in the app to copy a unique URL they could share with friends and followers across the web.
Image Credits: NGL App Store listing
While Snap could prevent direct integrations with its own developer tools, NGL users could still copy and paste the special link into their Snapchat Stories or wherever they chose — like Twitter or any other app. However, a “Share” button in the app made it easy to post directly to Instagram Stories. Then, when others saw the link on their friend’s Story or post, they could click it to anonymously ask that person a question. These questions would appear as messages in NGL’s in-app “Inbox” for users to read and respond to.
However, NGL had a trick up its sleeves. If users didn’t get any engagement on their shared link, the app itself would generate messages automatically. Users had no real way of knowing that these messages were actually fake questions the app was sending them. But many suspected that was the case as the questions sounded like things their friends wouldn’t ask. (We confirmed the messages were fake by generating an NGL link but not sharing it. We then received messages).
NGL’s app reviews have been filled with complaints that its questions seemed to be coming from bots. What’s worse, the app developer was charging users for “hints” to learn more about who was asking the question. This means users were paying, in some cases, for hints about bots!  This could be considered fraud. (We’d advise impacted users to request refunds from Apple.)
The NGL app got its ideas from rival Sendit, a similar social app that also offers a variety of Snapchat games. In fact, Sendit’s maker is now suing NGL for stealing its ideas — the NGL developer previously worked on Sendit before realizing the potential in simply cloning the idea and raking in the money himself. As it turns out, there is some business to be had here. By July, NGL had topped 15 million downloads and had pulled in  $2.4 million in revenue by selling its subscriptions.

Anonymous social app NGL tops 15M installs, $2.4M in revenue as users complain about being scammed

TechCrunch had called out NGL for its misleading tactics and, apparently, someone was listening. (Actually, we do understand there was a discussion between the developer and Apple about this). NGL has not commented.
Yesterday, NGL issued an update that now sees it labeling its fake messages with a tag that reads “sent with from the NGL team.” This is meant to indicate the message is not from a friend but from the app itself. (Arguably, the wording could be clearer. Some users — particularly among its target market of young adults —  could interpret this tag to mean the message is simply being delivered by the app.)
These messages also don’t show a subscription prompt. In addition, the subscription cost was lowered a bit, from $9.99/week to $6.99/week and now includes other features beyond “hints.” For instance, it touts users will get “early access” to exclusive games besides the anonymous Q&A. One of the paid games is already included — an anonymous confessions game.
The app’s rival Sendit’s Q&A feature had worked in much of the same way and it, too, just updated its subscription. Now, instead of just charging for hints, Sendit “Diamond members” can reveal the name and Bitmoji of the sender (in some cases), access exclusive games, unlock a custom icon and remove ads from the experience, the app claims. However, its pricing still remains $9.99 per week.
Though the viral buzz around these apps has since died down a bit, they still remain highly ranked. NGL is the No. 9 app on the U.S. App Store’s Lifestyle charts and Sendit is No. 12 among Social Networking apps.
Top anonymous social app NGL forced to stop tricking its users

Starbucks to unveil its web3-based rewards program next month

Starbucks will unveil its web3 initiative, which includes coffee-themed NFTs, at next month’s Investor Day event. The company earlier this year announced its plans to enter the web3 space, noting its NFTs wouldn’t just serve as digital collectibles, but would provide their owners with access to exclusive content and other perks.
At the time, Starbucks was light on details as to what its debut set of NFTs would look like, specific features they’d provide or even what blockchain it was building on. It said the plan was likely to be multichain or chain-agnostic, hinting at plans that weren’t yet finalized.
Overall, the coffee retailer kept its web3 news fairly high level, explaining simply that it believed digital collectibles could create an accretive business adjust to its stores and that more would be revealed later in 2022.

Starbucks to launch NFTs this year, offering access to ‘unique experiences and benefits’

While some companies jumped on the NFT bandwagon without much thought as to how their investments would fit in with their larger business goals, Starbucks seems to be attempting a different approach. It sees the collectibles as an extension of customer loyalty. The company brought in Adam Brotman, the architect of its Mobile Order & Pay system and the Starbucks app, to help serve as a special advisor on the project.
Mobile Order & Pay has been one of Starbucks’ biggest successes, in terms of tech innovations. The company was one of the first to introduce the concept of a digital wallet, even before Apple Pay became ubiquitous. And as broader mobile payment adoption has grown, Starbucks mobile ordering has, too. In the past quarter — Starbucks’ fiscal Q3 — mobile orders, delivery and drive-through combined drove 72% of Starbucks’ U.S. revenue. In addition, the mobile ordering sales mix grew to a record high of 47%, up 13% year-over-year, following COVID-driven changes in consumer behavior, the company said.
Starbucks founder and interim CEO Howard Schultz, who returned to the company in April, teased its forthcoming web3 initiative during this week’s earnings call with investors.
“We have been working on a very exciting new digital initiative that builds on our existing industry-leading digital platform in innovative new ways all centered around coffee and most importantly, loyalty, that we will reveal at Investor Day,” Schultz said.
The company had previously announced its plans to host its 2022 Investor Day in Seattle on September 13, 2022.
Schultz continued, “we believe this new digital web3-enabled initiative will allow us to build on the current Starbucks Rewards engagement model with its powerful spend to earn stars approach while also introducing new methods of emotionally engaging customers, expanding our digital third place community, and offering a broader set of rewards, including one-of-a-kind experiences that you can’t get anywhere else, integrating our digital Starbucks Rewards ecosystem with Starbucks-branded digital collectibles as both a reward and a community building element.
“This will create an entirely new set of digital network effects that will attract new customers and be accretive to existing customers in our core retail stores,” he added.
Though the details aren’t yet fleshed out, the approach here sounds potentially interesting — at least compared with some other corporate NFT projects (an admittedly low bar). The company hadn’t before clarified that the NFTs would be tied directly to Starbucks Rewards.
Currently, customers earn Stars with purchases in the app or at Starbucks stores, which can then translate into tangible rewards — like free drinks. It appears that the new NFTs will now be incorporated into part of this loyalty program, somehow. If customers were to “earn” the collectibles through everyday purchases, perhaps, that could potentially onboard more people to the web3 ecosystem. This is one of the challenges the space faces today, where purchases of digital art and collectibles often come at high costs and with sizable fees. What’s more, the digital program could give customers a reason to care about NFTs, if the rewards and so-called “one-of-a-kind” experiences ended up being something actually worth earning. (Of course, that remains to be seen.)
There is some indication that consumers are interested in easier ways to enter the web3 space, however. For example, the crypto rewards app Sweatcoin has become a breakout hit thanks to how it rewards users with “Sweatcoins” for every 1,000 steps they walk. The app this past quarter was No. 4 by global downloads and No. 6 by monthly active users on data.ai’s list of “Top Breakout Apps” — meaning, those that saw the largest absolute growth in downloads in the quarter. There’s also now a good handful of games offering play-to-earn models, which aim to tie a fun activity like gaming to cryptocurrencies or NFTs. These have seen more mixed success as some gamers are opposed to the idea.
During the call, Schultz also stressed the value of catering to the younger consumer. Though his comments were more of a reflection of Gen Z’s demand for Starbucks’ cold drinks and iced shaken espresso — which drove sales in the quarter — a web3-based loyalty program could serve as another way to attract younger consumers to the brand.
“We don’t want to be in a business where our customer base is aging and we have a less relevant situation with younger people,” Schultz said, before touting that the company has “never been, in our history, more relevant than we are today to Gen Z.”
“To me, that cohort is so powerful, and the attachment rate that we have with them and the loyalty is just building,” he added.
Starbucks posted strong earnings in the quarter, beating Wall Street’s expectations despite the economic challenges. The company reported revenue of $8.15 billion versus $8.11 expected, and earnings per share of 84 cents adjusted versus 75 cents expected.
Starbucks to unveil its web3-based rewards program next month

Tinder to kill virtual currency, metaverse plans amid Match Group earnings loss; Tinder loses its CEO

Dating giant Match Group announced a series of changes to Tinder’s management team alongside the announcement of disappointing second-quarter earnings on Tuesday. Notably, Tinder CEO Renate Nyborg will be departing the company after less than a year in the top job. Match Group is also killing Tinder’s plans to adopt new technology, like virtual currencies and metaverse-based dating.
In a shareholder letter, Match Group CEO Bernard Kim expressed frustration with Tinder’s current performance, noting the popular dating app has not been able to realize its typical monetization success over the past few quarters and is failing to meet the company’s original expectations for revenue growth for the latter half of 2022.
Kim chalked up Tinder’s troubles to “disappointing execution on several optimizations and new product initiatives,” but added that Tinder’s product execution and velocity could still be improved.
Alongside the departure of Nyborg, Tinder will have a reorganized management team that also includes:
Faye Iosotaluno, formerly Match Group’s chief strategy officer, as Tinder’s COO
Mark van Ryswyk, as Tinder’s chief product officer. Ryswyk is an experienced gaming executive who joined the company in June.
Melissa Hobley, formerly OkCupid’s CMO, as Tinder’s chief marketing officer
Tom Jacques, as Tinder’s chief technology officer. An 11-year Match Group veteran, he has been Tinder’s CTO for the last five years.
Advisor Amarnath Thombre. The current CEO of Match Group Americas and 15-year Match Group veteran will advise the Tinder management team on product roadmap and growth.
Kim said he will oversee the team while Tinder searches for a permanent CEO.
Reading between the lines, there was also a hint that the younger generation of users may have lost its appetite for dating apps like Tinder — a culture shift which can’t just be chalked up to lingering pandemic impacts. The letter notes that people have moved past COVID lockdowns and re-entered “a more normal way of life,” but their willingness to try online dating apps for the first time hasn’t returned to pre-pandemic levels.
Instead, Match Group reports that its highest engagement is now coming from existing users.
As part of Tinder’s revamp, its “dating metaverse” ambitions have been dramatically scaled back. The company had been planning to leverage its Hyperconnect acquisition to create a new form of online dating in a virtual environment, but those ideas are on pause as Match Group now has to address broader issues.
“…Given uncertainty about the ultimate contours of the metaverse and what will or won’t work, as well as the more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in metaverse at this time,” wrote Kim. “We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.”
Also on the chopping block was virtual currency, which Match Group was experimenting with as Tinder Coins. (While Match Group hadn’t gotten so far as to announce blockchain integrations for the coins, the virtual currency’s role in its broader metaverse plans suggested crypto could be part of its long-term roadmap.)
“After seeing mixed results from testing Tinder Coins, we’ve decided to take a step back and re-examine that initiative so that it can more effectively contribute to Tinder’s revenue,” said Kim. “We also intend to do more thinking about virtual goods to ensure that they can be a real driver for Tinder’s next leg of growth and help us unlock the untapped power users on the platform,” he added.
The company says it’s still planning to develop features to make Tinder more appealing to women, including a subscription-based package that will provide “curated recommendations” as well as features designed to get friends involved in introductions. Across other products, it will also look to new features, like livestreaming video, to drive adoption.
Overall, Match posted Q2 2022 revenue of $795 million, up 12% year-over-year, but below average Wall Street estimates of $804.22 million. It also posted a loss of $31.86 million, or 11 cents per share, versus 46 cents in the year-ago quarter. Analysts were expecting earnings of 57 cents per share. Match said its operating loss was $10 million, impacted by a $217 million write-down of intangibles related to lower financial outlooks for its Azar and Hakuna apps from Hyperconnect.
Match Group paying users were up 10% year-over-year to 16.4 million. Tinder direct revenue grew 13% from the prior quarters, driven by 14% growth to 10.9 million paying users.
Image Credits: Match Group
Estimates for the quarter ahead weren’t good either, with Match Group forecasting flat Q3 growth to $790 million to $800 million in revenue, below estimates of $883 million. Tinder revenue growth is expected to be in the “mid single digits.”
Shares dropped more than 20% in after-hours trading on the news.
Updated 8/2/22, 6:00 pm ET to clarify Tinder had not formally announced blockchain integrations for Tinder’s virtual currency. 
Tinder to kill virtual currency, metaverse plans amid Match Group earnings loss; Tinder loses its CEO

This Week in Apps: Instagram backlash, TikTok gaming, Snapchat+ makes millions

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
Global app spending reached $65 billion in the first half of 2022, up only slightly from the $64.4 billion during the same period in 2021, as hypergrowth fueled by the pandemic has slowed down. But overall, the app economy is continuing to grow, having produced a record number of downloads and consumer spending across both the iOS and Google Play stores combined in 2021, according to the latest year-end reports. Global spending across iOS and Google Play last year was $133 billion, and consumers downloaded 143.6 billion apps.
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and much more.
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Top Stories
Users demand the TikTok-ification of Instagram must stop 
How do you modernize an app like Instagram, whose roots are in iconic iPhone photography, to support users’ growing engagement with short-form video? If you’re one of the many increasingly frustrated Instagram users, you simply wish it would not attempt this pivot at all. You’re sick of the app’s constant changes, its clutter, its ads, its force-fed recommendations, and you’re not a fan of its TikTok ambitions. You just want to see your friends’ posts.
This issue finally came to a head this week when celeb sisters and Instagram top creators Kylie Jenner and Kim Kardashian shared a petition that demanded Instagram to “stop trying to be tiktok.” The day after, Instagram head Adam Mosseri posted a video addressing the concerns and said the app would temporarily roll back some of its recent changes, including the test of a full-screen TikTok-like experience and the increase in “recommended” posts.
The company has brought this user backlash on itself, of course, with its continual “tests” of new UIs and its desperate admissions about how TikTok is eating its lunch, forcing it to adapt or die. Plus, Instagram claims video is what people want even when they’re saying otherwise. It insists its own data supports that video has been growing faster as mobile networks got faster and data became cheaper.
While that may be true, Instagram has been throwing out the baby with the bathwater as it attempts to prioritize elements of TikTok in its own app. People want different experiences from their social platforms — and Instagram is trying to do it all, without acknowledging that the real threat from TikTok is not the video content itself, necessarily, but rather TikTok’s addictive algorithm that increases users’ time spent in the app. TikTok has figured out how to recommend posts that users welcome, while Instagram’s attempt to do the same has fallen flat. Combined with TikTok’s ability to attract a younger demographic in terms of both creators and viewers alike, the app has become a massive force in social media.
Instagram will need to find a way to balance the demands of a user base that wants to still celebrate social connection (including through static media), with creator demands for increased discovery and the rise of video. This is not an easy task, but perhaps step one should be to allow users to engage with Instagram as they like. Just as how users can opt to scroll the main Feed instead of viewing Stories and vice versa, Instagram’s TikTok-ishness should rather be an optional entry point, not the entirety of the Instagram experience.
Snapchat+ outpaces Twitter Blue after just a month
Image Credits: Snapchat
Snapchat’s recent move into premium subscriptions has gained a bit of traction in its first weeks on the market.
The new Snapchat+ paid subscription launched on June 29, 2022 offering users access to various premium features, while also importantly giving the company a means of diversifying its revenue streams beyond advertising. This is critical for the social app given that the ad market is currently impacted by broader macroeconomic forces that have slowed demand. In addition, Snapchat continues to feel the effects of Apple’s 2021 privacy changes that allowed users to opt-out of tracking and is facing increased competition from rival TikTok.
For $3.99 per month, the Snapchat+ subscription allows devoted app users to see who has rewatched their Stories, change their app icon, pin another user as a “#1 Best Friend,” try out pre-release features and more. Earlier this month, the company also made web access a part of the Snapchat+ subscription.
Since the subscription’s arrival, Snapchat’s mobile app has generated approximately $7.3 million in worldwide consumer spending across iOS and Android according to Sensor Tower. This represents the first 30 days of Snapchat+’s availability, June 29, 2022–July 26, 2022. The figure is also around 116 times higher than the $63,000 the app pulled in via in-app purchases in the 30 days prior from May 30, 2022–June 28, 2022, indicating the bulk of the new revenue was driven by Snapchat+.
Notably, the number is already larger than Twitter’s in-app revenue, which totals nearly $4 million since Twitter Blue’s June 2021 launch — over a year’s time. Snapchat+ could be succeeding because it has more power users than Twitter, Sensor Tower data shows, as 34% of its active installs open the app every single day compared with just 19% for Twitter.
Image Credits: Sensor Tower
TikTok gets into mobile games
Here’s a scoop: TikTok is getting into gaming.
The company confirmed the launch of a pilot test of “mini-games” that can be played inside the social video app and discovered through creators’ videos. The gaming pilot quietly launched just weeks ago with a variety of new partners, including game developers Vodoo, Nitro Games, FRVR, Aim Lab and Lotem.
The launch follows reports earlier this year that the social video app maker was looking to expand into HTML5 gaming after first testing the waters with gaming giant Zynga last November. The two companies had then teamed up to launch a TikTok exclusive title, Disco Loco 3D, which was similar to Zynga’s successful game (by way of acquisition) High Heels.
TikTok’s mobile games today don’t monetize through ads or in-app purchases of any kind, but if they find traction with users, things could change as TikTok further developed its games platform. In that case, the app would not only recall the social gaming era of early Facebook (which incidentally drove Zynga’s success), it would also allow TikTok to route around the app stores’ commissions.
Image Credits: TikTok
Weekly News
Platforms: Apple
Apple released the fourth beta of iOS 16. The update offers a variety of new features, like the ability to edit and delete iMessages — a feature that now includes an edit history log in response to user concerns that the editing feature could be used maliciously. Other new features include the ability for developers to test Live Activities, improved integrations with Continuity Camera, a new interface when updating the Home Screen’s design, more options for the “unsend” time in Mail, and a few new wallpapers, among other smaller tweaks.
Apple announced Live Activities and Activity Kit won’t launch with the initial release of iOS 16 but will rather become available later in the year.
Apple is also hosting summer programs that allow developers to attend live presentations and Q&A sessions with App Store experts.
Apple reported Q3 earnings with revenue of $83B, up 2% YoY and above estimates of $82.8B. iPhone revenue was up 3% to $40.7B but Mac was down 10% to $7.4B. Apple’s services revenue grew 12% YoY to $19.6B and 860M paid subscribers, up from 825M in Q2.
Platforms: Google
Google announced new Play Store policies around intrusive ads, VPNs, alarms, health misinformation, impersonation and more. The policies will roll out at different intervals and will, among other things, restrict apps’ usage of full-screen ads that aren’t closeable after 15 seconds and full-screen interstitials that appear before the app’s loading screen. Apps that use icons that trick users into thinking they’re affiliated with another brand will also be restricted along with VPNs that track user data or reroute traffic to make money through ads.
At the Think with Google Gaming Day in China, Google shared ways to help developers earn more revenue and attract high-value players with a variety of new features and ad tools.
Google updated its Google Maps app with location-sharing notifications, immersive views and better bike navigation in several markets.
Augmented Reality

Snapchat launched its own spooky AR game called “Ghost Phone,” which sees players working to discover the secrets of an abandoned phone and hunting ghosts using AR. The game was built using the Lens Studio and web-first game engine PlayCanvas. It also uses Snap’s World Mesh technology and surface recognition to place game objects around the user. The company launched a Bitmoji dance game last month.
Fintech/Crypto
A U.S. Senator sent a letter to both Apple and Google asking for details as to how they’re preventing cryptocurrency apps from engaging in fraud on their respective app stores.
Messaging app Viber debuted a new digital wallet called Payments, offering bill pay, money transfers and support for buying goods.
The new Google Wallet rolled out to all users with Android 5.2+. The wallet app is available as a separate app in the U.S. and Singapore and as a Google Pay update for other markets.
Social
Snap missed in Q2 with revenue of $1.11 billion — a figure up 13% from the same period a year earlier but below its previous guidance of 20% to 25%. The company cited macroeconomic conditions for lower advertiser demand and continues to be impacted by Apple’s privacy changes. DAUs grew 18% YoY to 347 million. The company said it will reduce hiring, repurchase up to $500M in stock, and it locked in CEO and CTO roles until at least Jan. 1, 2027. Its stock tanked after earnings.
Snap announced a new creator fund that will award independent musicians posting their music on Snapchat up to $100,000 per month. The company will distribute payments for up to 20 songs per month at $5,000/song starting in August for musicians distributing to Snapchat via DistroKid.
Meta reported its first-ever decline in quarterly revenue year over year in its Q2 earnings. The company’s revenue was $28.82 billion, a 1% decrease from $29.07 billion in the second quarter of 2021. It also swapped its CFO.
Meta is killing Tuned, its social app for couples which will cease operations on Sept. 19, 2022. The app was a project from Meta’s New Product Experimentation Team (NPE) — one of many now shuttered attempts designed to test if Meta could create new social experiences in-house.
BeReal got ripped off. Because Instagram didn’t have enough drama this week, it also quietly rolled out a copycat of BeReal inside its app — which misses the point about why the new social network grew popular in the first place: It’s about your friends.
Instagram said it will begin to survey its U.S. users about race to assess if it is “fair and equitable.” The optional survey will be hosted by research group YouGov.
Twitter Blue is getting more expensive. Twitter announced it’s increasing the price of its premium subscription from $2.99 to $4.99 per month effective immediately for new subscribers and starting in October for existing subscribers. The hike is also rolling out to other Twitter Blue markets, including Australia, Canada and New Zealand at 6.99 AUD (previously 4.49 AUD), 6.49 CAD (previously 3.49 CAD) and 6.49 NZD (previously 4.49 NZD).
Twitter also began testing a status feature that lets you add a mood (hot take, vacation mode, unpopular opinion, etc.) alongside your posts and a way to post multiple forms of media in a single tweet.
The anticipated Twitter-Elon trial has set a date. The parties will battle it out in court starting October 17.
Photos
The Google Photos app gained an AI-based new movie editor and video editing features, but only for Chromebook users for the time being.
Amazon is killing its cloud storage service Amazon Drive and shifting users to Amazon Photos instead. Customers have until Dec. 31, 2023 to save their stored files.
Messaging
WhatsApp rolled out chat migration from Android to iOS and iOS to Android for all users. The feature requires Android 5 or higher, iOS 15.5 or above, and the Move to iOS app.
WhatsApp also appears to be working on a chatbot that will alert you to what’s new when the app is updated.
Streaming & Entertainment
Image Credits: YouTube
YouTube’s mobile app added a new feature that allows creators to select any segment up to 60 seconds from an existing long-form video and turn it into a YouTube Shorts video that links back to the original.
Baidu’s video streaming service iQiyi signed a content deal with TikTok’s Chinese sister app Douyin, which allows Douyin users to use iQiyi content to make short videos. The deal ends a dispute over alleged copyright infringement.
Comcast’s streaming app Peacock’s paid subscribers stayed flat at 13 million, as losses widen to $467 million in the company’s first quarter.
YouTube’s ad revenue grew just 4.8% YoY to $7.34 billion in Q2, below expectations of a 7% YoY increase to $7.49 billion. This YouTube’s slowest ad growth in over two years.
Twitter for iOS updated the Spaces bar for live audio streams to make it easier to see who’s hosting, what topics are being discussed and more.
Spotify rolled out a new Friends Mix playlist that gives users a way to discover new tracks based on the “Blends” they’ve created with their friends.
TikTok filed a trademark application for a service called TikTok Music that could allow users to buy, share and download music. Parent company ByteDance already runs a music service, Resso, but not in the U.S. — although ByteDance has considered expanding it in the past.
Gaming
Roblox rolled out an update that makes its materials appear more lifelike and overhauled aspects of its developer toolkit to support this change. The move is a part of the company’s mission to improve its visual fidelity, but game developers will be able to choose if they want to keep creating using the more blocky, traditional style.
Backbone, the maker of a popular gaming controller for iPhone, expanded with the launch of the Backbone One PlayStation Edition. The new device allows compatible mobile games to use proper PlayStation glyphs (Triangle, Circle, etc.) instead of ABXY. It will cost the same as the original Backbone One at $100.
K-pop stars Blackpink collaborated with PUBG Mobile, which just hosted its first in-game concert. The band released a new video featuring virtual avatars inside the game, which was earlier teased during the concert.
Government & Policy
The popular mobile game Battlegrounds Mobile India (BGMI) was pulled by Apple and Google from their respective app stores in India to comply with a government order. Krafton had said it cut ties with publishing partner Tencent, so it’s unclear why the game was pulled. The game had over 16.5M MAUs.
Google will be allowed to relaunch Street View in India in 10 cities initially, 10 years after the government shut down the service for security reasons.
China’s government asked TikTok for a stealth social account to target Western audiences with propaganda, Bloomberg reported, but TikTok execs pushed back and denied the request.
Security & Privacy
Messaging app JusTalk, popular in Asia, has been leaking users’ unencrypted private messages. The app, which has 20 million global users, had claimed to offer end-to-end encryption across its flagship apps and its child-friendly JusTalk Kids.
Funding and M&A
Livestream shopping app for collectibles Whatnot raised $260 million in Series D funding at a $3.7 billion valuation, up from $1.5 billion in September 2021. The livestream shopping market has only grown to $11 billion in the U.S. versus the $600 billion industry in China.
School communications app ClassDojo raised $125 million in Series D funding in September 2022, valuing the business at $1.25 billion. The company plans to launch a kids virtual space in August 2022.
Paris-based Contentsquare raised $400 million in Series F funding and $200 million in debt for its web and app analytics business. The round doubled the startup’s May 2021 valuation to $5.6 billion.
Conversational commerce startup Charles raised $20 million in Series A funding led by Salesforce Ventures to bring its service to WhatsApp in Europe. The company so far has seen the most traction in its domestic German market, but has received inbound interest from Italy, Spain, France, the Netherlands, and the U.K.
Blockchain infrastructure company Chain acquired Measurable Data Token for $100 million. The deal sees it acquiring a cash-back mobile app, RewardMe, and the financial data protocol MeFi.
Banking and networking platform Guava, targeting Black entrepreneurs, raised $2.4 million in a pre-seed round led by Heron Rock. The company aims to narrow the racial wealth gap by providing financial services to Black small businesses and creators.
Text-to-speech app Peech raised $550,000 in funding led by Flyer One Ventures. The app offers natural-sounding text-to-speech in 50 languages, allowing users to listen to Word docs, web articles or PDFs for $3/week.
South African startup Qwili raised $1.2 million in seed funding to scale its app and low-cost NFC-enabled smartphone. Qwili software can be downloaded to any phone in addition to being pre-installed on Qwili’s phones, which are used as point-of-sale devices for merchants selling data, pay-TV subscriptions, groceries or clothing to customers.
Brooklyn-based fantasy sports app Underdog raised $35 million in Series B funding, valuing the business at $485 million. The company plans to launch licensed sports betting in Ohio and Colorado in 2023.
Spotify’s latest SEC filing revealed it paid €291 million ($295 million) for its four recent acquisitions, Findaway, Podsights, Chartable, and Sonantic. Findaway, specifically, cost the company €117 million (around $123 million).
U.K. investing app Shares raised $40 million led by Peter Thiel-backed Valar Ventures, bringing its total raised to $90 million. The app has over 150,000 users.
U.S.-based digital bank Umba, which focuses on emerging markets, acquired a majority share of Kenyan microfinance bank Daraja for an undisclosed amount.
Downloads
Lock Screen widget TestFlights
A new type of app to download? We’re in!
If you’re running the iOS 16 public beta and looking to dig into Lock Screen widgets, there are a number of interesting apps now being tested that offer a look into how iOS developers are thinking about use cases for this prominent iPhone real estate. (If you ask nicely, the developers might add you to the TestFlight!)
A few apps we’ve found useful include:
Lock Screen Contacts: This allows you to put a favorite contact directly on your Lock Screen, without having to give the app access to your iPhone Contacts thanks to Apple’s more secure Contacts API. Users can toggle and choose to remove the text, image and background. The app will sell for $3.99 at launch.  The same developer is also working on a Lock Screen Icon widget that will allow you to place any of some 4,000 icons on your Lock Screen to personalize your device.

The past month I’ve been making an iOS 16 Lock Screen widget app to quickly call contacts – much like speed dial.
I’m really pleased with how it’s turning out. pic.twitter.com/hVFJVeKgdY
— Rihab Mehboob (@elohohel) July 7, 2022

Day Ticker: This simple icon widget lets you quickly view how many more days until an important event — like a birthday, vacation, anniversary or anything else. Days until the kid goes to camp? Just two, my widget told me. We’d better start packing!
Can’t wait to use these!
Parcel’s Package Tracker: This widget keeps track of your expected deliveries and lets you see their status right on your Lock Screen.

Work in progress! pic.twitter.com/UntypJ1Pgu
— Parcel (@parcel_app) June 13, 2022

Home Widget: This widget will bring your HomeKit devices to your Lock Screen.
LockLauncher: Create custom Lock Screen widgets that can actually take actions — like open websites or apps, for example.
Tally: The current beta of this quick counter app includes a Lock Screen widget and other goodies.
Countdowns: Another widget for tracking the time until upcoming events.

Happy to announce that @HomeWidget beta version now supports iOS 16 Lock Screen Widgets!
If you’re on iOS16 beta and want to test this new feature, contact us.#iOS16 #ios16lockscreen #ioslockscreen #homekit #iOSWidgets #LockScreen #WWDC22 #iOS16beta pic.twitter.com/84mFMTiW4e
— Home Widget for HomeKit (@HomeWidget) July 21, 2022

This Week in Apps: Instagram backlash, TikTok gaming, Snapchat+ makes millions