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Tinder now testing video chat in select markets, including US

Tinder announced this morning it will begin to test video chat in its mobile dating app with some members in select worldwide markets, including in the U.S. The feature, which allows Tinder matches to go on “virtual” dates when both opt in, will first be available to users in Virginia, Illinois, Georgia and Colorado in the U.S., as well as in Brazil, Australia, Spain, Italy, France, Vietnam, Indonesia, Korea, Taiwan, Thailand, Peru and Chile, also with some members.
Parent company Match had first promised it would introduce video chat in Tinder as part of its Q1 2020 earnings report and touted the feature as a way Tinder was evolving its business in the face of the coronavirus pandemic. The company had also then detailed the pandemic’s impact on its app, which had slowed Tinder user growth in the quarter as social distancing requirements and government lockdowns went into effect.
Tinder ended Q1 with 6 million subscribers, up from 5.9 million in December 2019 — meaning it only added 100,000 paid subscribers during the quarter. For comparison, in the year-ago quarter it added 384,000 paid users. Tinder’s average revenue per user (ARPU) also grew just 2%, mainly due to purchases of à la carte features, not subscriptions.
Tinder parent Match says it had tested video at various times before the COVID-19 outbreak, but said it never saw significant adoption. The pandemic has changed things, however. Today, Tinder allows users to search for matches worldwide through its Passport feature, making its dating app more of a social network. Meanwhile, Tinder users who do want to date now feel almost forced to use video for their early interactions instead of going on briefer “getting to know you” coffee or drink dates, as before.
Without a video option in the app, these users often turned to third-party apps like Snapchat or other video chat apps for these early connections. Meanwhile, daters who prioritized a video option may have even made the switch to rival Bumble, which has offered video for a year. Facebook also recently said it would add video for its Facebook Dating users, as a result of the coronavirus pandemic, forcing Tinder’s hand.
Image Credits: Tinder
The new feature itself is simple to use. Once two people have matched and are chatting in the app, they can indicate they’re ready to move to a video session by tapping the new video icon. The clever part is that the feature itself isn’t enabled until both matches opt in. The company notes that Tinder users won’t be informed if a match toggles on the video chat feature. The idea is to wait until the discussion comes up naturally, as it often does in a text-based chat.
When both users have toggled on video chat, they have to agree to ground rules before the chat begins. Tinder says calls should remain “PG,” with no nudity or sexual content. The chats are also supposed to stay “clean,” meaning no harassment, hate speech, violence or other illegal activities. Users also agree calls will need to be age-appropriate, meaning without minors involved.
The feature, which Tinder calls “Face to Face,” is enabled on a match-by-match basis, not universally for all matches.
How exactly Tinder plans to properly moderate what appears to be a fantastic new solicitation platform remains less clear. In addition, Tinder’s move to embrace video means it could be putting sex offenders in front of the camera. As an investigative report last year from ProPublica found, most of the Match-owned dating apps, including Tinder, were not screening for sexual predators.
For now, Tinder says users are asked to review the call when it wraps.
In a pop-up, users who finish a video call will be asked whether they would go Face to Face again. Here, they’ll also have the option to report the user, if needed. These sorts of retroactive rating systems don’t do much for anyone who feels unsafe in the moment, of course, and it’s not clear to what extent Tinder will step in to police calls in progress.
Asked for specifics, Tinder declined to share. (In an earlier report, Tinder CEO Elie Seidman suggested Tinder would use machine learning models to monitor chats.)
Also unclear is to what extent Tinder would step into to stop what may otherwise be consensual sexual activity, including of the paid variety.
Tinder doesn’t seem worried about these off-brand use cases for video chat, however. It says it recently surveyed around 5,000 members in the U.S. and around half of them have already had video dates with a match off its platform over the past month, indicating a willingness to try video for online dating. In addition, 40% of Gen Z members said they wanted to keep using video as an initial step before agreeing to meet in real life, even when places like restaurants and bars were re-opened.
“Connecting face-to-face is more important than ever, and our video chat feature represents a new way for people to get to know one another in-app no matter their physical distance,” said Rory Kozoll, head of Trust and Safety Products at Tinder, in a statement about the launch. “Face to Face prioritizes control to help our members feel more comfortable taking this next step in chats if and when it feels right for them. We’ve built a solid foundation, and look forward to learning from this test over the coming weeks,” Kozoll added.
The feature is launching in testing only starting today, in select markets.

Tinder now testing video chat in select markets, including US

DoubleDown is going public: Why isn’t its IPO worth more?

Agora isn’t the only company headquartered outside the United States aiming to go public domestically this quarter. After catching up on Agora’s F-1 filing, the China-and-U.S.-based, API-powered tech company that went public last week, today we’re parsing DoubleDown Interactive’s IPO document.
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The mobile gaming company is targeting the NASDAQ and wants to trade under the ticker symbol “DDI.”
As with Agora, DoubleDown filed an F-1, instead of an S-1. That’s because it’s based in South Korea, but it’s slightly more complicated than that. DoubleDown was founded in Seattle, according to Crunchbase, before selling itself to DoubleU Games, which is based in South Korea. So, yes, the company is filing an F-1 and will remain majority-held by its South Korean parent company post-IPO, but this offering is more a local affair than it might at first seem.
Even more, with a $17 to $19 per-share IPO price range, the company could be worth up to nearly $1 billion when it debuts. Does that pricing make sense? We want to find out.
So let’s quickly explore the company this morning. We’ll see what this mobile, social gaming company looks like under the hood in an effort to understand why it is being sent to the public markets right now. Let’s go!
Fundamentals
Any gaming company has to have its fun-damentals in place so that it can have solid financial results, right? Right?
Anyway, DoubleDown is a nicely profitable company. In 2019 its revenue only grew a hair to $273.6 million from $266.9 million the year before (a mere 2.5% gain), but the company’s net income rose from $25.1 million to $36.3 million, and its adjusted EBITDA rose from $85.1 million to $101.7 million over the same period.

DoubleDown is going public: Why isn’t its IPO worth more?

Newzoo forecasts 2020 global games industry will reach $159 billion

Games and esports analytics firm Newzoo released its highly cited annual report on the size and state of the video gaming industry yesterday. The firm is predicting 2020 global game industry revenue from consumers of $159.3 billion, a 9.3% increase year-over-year. Newzoo predicts the market will surpass $200 billion by the end of 2023.
Importantly, the data excludes in-game advertising revenue (which surged +59% during COVID-19 lockdowns, according to Unity) and the market of gaming digital assets traded between consumers. Advertising within games is a meaningful source of revenue for many mobile gaming companies. In-game ads in just the U.S. drove roughly $3 billion in industry revenue last year, according to eMarketer.
To compare with gaming, the global markets for other media and entertainment formats are:
Pay TV: $226 billion in 2019 (excludes streaming services)
Publishing: $261 billion in 2017, of which books accounted for $121 billion
Film: $101 billion in 2019 ($42.5 billion from box office)
Music: $62 billion in 2017 ($30 billion recorded music, $6 billion music publishing, $26 billion live music)
Board games and playing cards: $12 billion in 2018
Podcasting: $863 million 2020 advertising revenue (there is no good data on subscription and live events revenue in podcasting, but it is fair to estimate it at a fraction of the total ad revenue figure)
Counting gamers
Of 7.8 billion people on the planet, 4.2 billion (53.6%) of whom have internet connectivity, 2.69 billion will play video games this year, and Newzoo predicts that number to reach three billion in 2023. It broke down the current geographic distribution of gamers as:
1,447 million (54%) in Asia-Pacific
386 million (14%) in Europe
377 million (14%) in Middle East & Africa
266 million (10%) in Latin America
210 million (8%) in North America

Newzoo forecasts 2020 global games industry will reach $159 billion

Four perspectives: Will Apple trim App Store fees?

The fact that Apple takes a 30% cut of subscriptions purchased via the App Store isn’t news. But since the company threatened to boot email app Hey from the platform last week unless its developers paid the customary tribute, the tech world and lawmakers are giving Apple’s revenue share a harder look.
Although Apple’s Senior Vice President of worldwide marketing Phil Schiller denied the company was making any changes, a new policy will let developers challenge the very rules by which they were rejected from the platform, which suggests that change is in the air.
According to its own numbers, the App Store facilitated more than $500 billion in e-commerce transactions in 2019. For reference, the federal government has given out about $529 billion in loans to U.S. businesses as part of the Paycheck Protection Program.
Given its massive reach, is it time for Apple to change its terms? Will it allow its revenue share to go gently into that good night, or does it have enough resources to keep new legislation at bay and mollify an increasingly vocal community of software developers? To examine these questions, four TechCrunch staffers weighed in:
Devin Coldewey
Lucas Matney
Sarah Perez
Darrell Etherington
Devin Coldewey: The App Store fee structure “seems positively extortionate”
Apple is starting to see that its simplistic and paternalistic approach to cultivating the app economy may be doing more harm than good. That wasn’t always the case: In earlier days it was worth paying Apple simply for the privilege of taking part in its fast-expanding marketplace.
But the digital economy has moved on from the conditions that drove growth before: Novelty at first, then a burgeoning ad market supercharged by social media. The pendulum is swinging back to more traditional modes of payment: one-time and subscription payments for no-nonsense services. Imagine that!
Combined with the emergence of mobile platforms not just as tools for simple consumption and communication but for serious work and productivity, the stakes have risen. People have started asking, what value is Apple really providing in return for the rent it seeks from anyone who wants to use its platform?
Surely Apple is due something for its troubles, but just over a quarter of a company’s revenue? What seemed merely excessive for a 99-cent app that a pair of developers were just happy to sell a few thousand copies of now seems positively extortionate.
Apple is in a position of strength and could continue shaking down the industry, but it is wary of losing partners in the effort to make its platform truly conducive to productivity. The market is larger and more complicated, with cross-platform and cross-device complications of which the App Store and iOS may only be a small part — but demanding an incredibly outsized share.
It will loosen the grip, but there’s no hurry. It would be a costly indignity to be too permissive and have its new rules be gamed and hastily revised. Allowing developers to push back on rules they don’t like gives Apple a lot to work with but no commitment. Big players will get a big voice, no doubt, and the new normal for the App Store will reflect a detente between moneyed interests, not a generous change of heart by Apple.

Four perspectives: Will Apple trim App Store fees?

This Week in Apps: Protests impact app stores, FTC fines app developer, kids’ app trends

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all.
The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.
In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.
This week, we’re taking a look at how the civil unrest and George Floyd protests played out across the app stores. The events led some apps — including private messaging apps, police scanners and alerting apps, and other social communication apps — to surge, and even break records. Google decided to delay the launch of Android 11 beta 1 in light of the recent events.
We’re also keeping up with COVID-19 apps and how the pandemic is changing app usage and consumer behavior. Plus, the FTC fined an app developer over privacy violations in a warning shot for the app industry; Zoom faced criticism for its encryption plans; Apple launched an open-source resource for password managers; and more.
How the George Floyd protests impacted the app stores
Protests drive downloads of police scanners 
Downloads of police scanner apps, tools for private communication and mobile safety apps hit record numbers last weekend in the U.S., amid the nationwide protests over the police killing of George Floyd, as well as the systemic problems of racial prejudice that plague the American justice system. According to data from app store intelligence firm Apptopia, top U.S. police scanner apps were downloaded a combined 213,000 times last weekend, including Friday — a 125% increase from the weekend prior and a record number for this group of apps.
The group of top apps included those with similar, if somewhat generic, titles, such as Scanner Radio – Fire and Police Scanner, Police Scanner, 5-0 Radio Police Scanner, Police Scanner Radio & Fire and Police Scanner +.
Citizen, Signal and others spike during protests
In addition to tracking police movements with scanners, protestors organized and communicated on secure messaging app Signal. Meanwhile, community safety app Citizen, which sends out police alerts, also saw a jump in usage. According to Apptopia, Citizen and Signal both set daily download records, Vox noted earlier this week.

Citizen
Citizen’s app lets users see “incidents,” based on radio communications with 911 dispatchers, police, fire departments and other emergency responders. The app uses high-powered scanners to tune into public radio channels, then digitizes and transcribes the audio, and turns those into incidents placed on the map. But the app is popular because it’s more than a police scanner; it includes a social networking layer where users can react and comment. 
Based on more recent data provided to TechCrunch by Sensor Tower, Citizen was installed around 620,000 times by first-time users in the U.S. during the past week, an increase of about 916% compared to the week prior. First-time installs reached a record 150,000 on June 2, nearly 12x the app’s average of 13,000 daily first-time installs during May. On average, the app was downloaded close to 86,000 times per day, or 6.6x larger than May’s daily average. The app grew to be as high as No. 4 on Tuesday, June 2 on the U.S. App Store, and is now No. 32 Overall on the top free charts.
Signal
Image Credits: Signal
The firm also estimated that Signal had been installed by approximately 135,000 first-time users in the U.S. during the past week across the app stores. This figure represented growth of 165% from the preceding seven days, or about 2.6x that total of approximately 51,000 new installs. Signal averaged about 19,000 installs per day over the past seven days.
For comparison’s sake, Signal was downloaded around 269,000 times in all of May and its average daily number of installs was 9,000. That makes the average for the past week about 2x higher.
Signal is currently ranked at No. 137 among the top free iPhone apps on the U.S. App Store. Earlier, it was ranked at No. 107 on Tuesday, June 2.
This week, Signal also added built-in face blurring for photos, to help better secure the sharing of sensitive information across its network.
Nextdoor and Neighbors by Ring
The civil unrest also impacted neighborhood networking app installs, as communities looked to share information about the protests with one another. Social networking app for neighbors Nextdoor was installed by 185,000 first-time users in the U.S. over the past week, an increase of 26% from 147,000 installs in the week prior. The app also jumped up nearly 50 places in the U.S. App Store rankings, moving from No. 2,014 to No. 156 in the top free iPhone apps chart.
Amazon-owned Neighbors by Ring, where neighbors share alerts, including security camera footage, was installed by 36,000 first-time users in the past week, an increase of 89% from its approximately 19,000 installs the week prior.
Twitter has a record-breaking week as users looked for news of protests and COVID-19

Civil unrest due to the nationwide George Floyd protests drove Twitter to see a record number of new installs this week, according to data from two app store intelligence firms, Apptopia and Sensor Tower. While the firms’ exact findings differed in terms of the total number of new downloads or when records were broken, the firms agreed that Twitter’s app had its largest-ever week, globally.
The app saw at least 677,000 installs at its highest point, Apptopia said. Sensor Tower said it topped 1 million. Twitter also broke a record for daily active users on Twitter in the U.S., when some 40 million people in the U.S. logged into the app on June 3, Apptopia noted. For comparison’s sake, Twitter reported its app had 31 million “monetizable” daily active users (mDAUs) in the U.S. in Q4 2019, which grew to 33 million in Q1 2020.
The spike in installs was attributed to the protests, which were being watched by a global audience, and COVID-19, which continued to spread in worldwide markets.
Apps turn their icons black in support of George Floyd protests 
A small handful of apps did the equivalent of the Instagram black square by turning their icons black this week as a gesture of support toward the protests and civil rights. Participating apps included Reddit, Joss & Main and Shop Avani, for instance. Moves like this can be criticized as being merely performative, but one of the companies involved — Reddit — later followed up with real action. Reddit co-founder Alexis Ohanion on Friday announced he was resigning as a member of the Reddit board, and is now urging them to fill his seat with a black candidate. He also said he would use his future gains from Reddit stock to serve the black community, starting with a $1 million pledge to Colin Kaepernick’s Know Your Rights Camp.
COVID-19 app updates and news

This Week in Apps: Protests impact app stores, FTC fines app developer, kids’ app trends