Feature - Android's application store will not be just Google's take on the App Store after all. Instead, the search giant has been developing a comprehensive content marketplace dubbed Android Market where actual applications will be a tiny, although important, variable of the equation. It will be unique in its openness as any content developer could sign up and upload content for an immediate availability on Android Market, which is a significant change from premium-only content exclusively provided by media conglomerates. Content developers will receive tools to track user and sales data in real-time. Despite big hurdles, Android Market has the opportunity to become the only content marketplace that bridges premium and user generated content and make both available on your handset.
There is no doubt anymore that a content delivery platform is a key strategic component of any aspiring mobile phone idea. Microsoft is teaming up with Nokia to expand Zune Marketplace to Nokia and Windows Mobile smartphones. Analysts suggest that Symbian could merge with Android to create an uber-mobile platform, but Google is already making its own bets with the Android Market (AM). Even T-Mobile said it will bring its own App Store rival next month, featuring applications for all major mobile phone platforms. Apple's App Store has seen impressive success in its first weeks of operation, but it may be in its most vulnerable position: Launched a month and a half ago, it made $30 million in just one month, demonstrating software is the next gold mine in the mobile phone space. But Apple kept the App Store limited to approved applications only, shutting out other content such as ringtones, TV shows, movies, etc.
Just like Apple, which is hosting Apple's App Store, the content available on AM will be hosted on Google's servers. The company will also take care of payments and marketing. But here is what we believe will make AM special.
Android Market is a marketplace, AppStore is just an application store
According to the Android Mobile Platform's Eric Chu, Android Market is "an open content distribution system that will help end users find, purchase, download and install various types of content on their Android-powered devices." Think Zune Marketplace and iTunes Store on steroids. Unlike Microsoft's or Apple's marketplace, AM could feature content from both big media companies and hobby developers, bridging the gap between premium and user-generated content. Google has enough engineering power to pull off such ambitious service. Its expertise in server infrastructure and search and relevance algorithms will certainly bring an edge to AM over anything out there.
Web 2.0 community features
AM enables Web 2.0 community features by default. Google has built the business around giving people tools to build and enable communities. The company said AM brings features that enable a feedback and rating system similar to what is available on YouTube. Of course, the App Store has these two features as well, but the execution is what matters. Google’s transparent integration could attract much more users than Apple's tightly controlled experience.
Easy content publishing as 1-2-3
Publishing an iPhone application on the App Store isn't trivial. Apple reviews and approves every iPhone application, forcing many developers to wait for days, even weeks. Some have even created an updated version of the application but are still waiting for Apple to approve the first version. Google says that content can debut in the AM similarly to YouTube: You need to register as a merchant, upload and describe your content and publish it.
Analytic tools
iPhone developers receive daily sales statistics from Apple but the break-out is pretty basic. There is not much useful information provided beyond the user ID, purchased application ID, payment method and the amount paid. Developers have been complaining about the high-level information from the start and it is an obvious opportunity for Google to shine. It has the experience and the software to offer a much more comprehensive analytics solution than Apple does.
Multi-billion dollar marketplace
The App Store managed to rake in $30 million in one month. At this rate, the App Store is $360 million a year business; Apple even believes the AppStore may grow into a billion dollar business soon. However, its reach is limited to 6 million iPhone users only. And even if iPhone users have a reputation to be deep-pocketed and more willing to part with their money than the average cellphone user, a marketplace that is open to many more cellphone models and many types of content could surpass the AppStore volume.
Challenges
AM’s success isn’t set in stone and Google has several problems to solve before AM will become a serious player. For example, not all AM features will be available from day one. According to Google, the first batch of Android handsets will have beta version of AM that will deliver at least support for free applications. An updated AM version will be rolled "soon", with paid content and more features such as versioning, multiple device profile support, analytics, etc. To confront users who are paying for a handset with beta software isn’t necessarily a good idea.
Additionally, content will not be monitored as the goal of AM is to provide as much content as possible. The absence of filtering mechanism could lead to all kind of junk on AM that would certainly spoil the experience for users.
And, of course, there is Google’s decision to exclude the Bluetooth API from the first version of the Android platform. This may not affect every user, but at least those who like to use a wireless headset. And if you do more with Bluetooth than just using a headset, then this omission is simply not acceptable.
Despite these hurdles, we think that five distinct advantages should give AM a solid start. The service appears to be different and refreshing enough to be able to compete on a feature-by-feature basis with the App Store and Zune Marketplace.
There is no doubt anymore that a content delivery platform is a key strategic component of any aspiring mobile phone idea. Microsoft is teaming up with Nokia to expand Zune Marketplace to Nokia and Windows Mobile smartphones. Analysts suggest that Symbian could merge with Android to create an uber-mobile platform, but Google is already making its own bets with the Android Market (AM). Even T-Mobile said it will bring its own App Store rival next month, featuring applications for all major mobile phone platforms. Apple's App Store has seen impressive success in its first weeks of operation, but it may be in its most vulnerable position: Launched a month and a half ago, it made $30 million in just one month, demonstrating software is the next gold mine in the mobile phone space. But Apple kept the App Store limited to approved applications only, shutting out other content such as ringtones, TV shows, movies, etc.
Just like Apple, which is hosting Apple's App Store, the content available on AM will be hosted on Google's servers. The company will also take care of payments and marketing. But here is what we believe will make AM special.
Android Market is a marketplace, AppStore is just an application store
According to the Android Mobile Platform's Eric Chu, Android Market is "an open content distribution system that will help end users find, purchase, download and install various types of content on their Android-powered devices." Think Zune Marketplace and iTunes Store on steroids. Unlike Microsoft's or Apple's marketplace, AM could feature content from both big media companies and hobby developers, bridging the gap between premium and user-generated content. Google has enough engineering power to pull off such ambitious service. Its expertise in server infrastructure and search and relevance algorithms will certainly bring an edge to AM over anything out there.
Web 2.0 community features
AM enables Web 2.0 community features by default. Google has built the business around giving people tools to build and enable communities. The company said AM brings features that enable a feedback and rating system similar to what is available on YouTube. Of course, the App Store has these two features as well, but the execution is what matters. Google’s transparent integration could attract much more users than Apple's tightly controlled experience.
Easy content publishing as 1-2-3
Publishing an iPhone application on the App Store isn't trivial. Apple reviews and approves every iPhone application, forcing many developers to wait for days, even weeks. Some have even created an updated version of the application but are still waiting for Apple to approve the first version. Google says that content can debut in the AM similarly to YouTube: You need to register as a merchant, upload and describe your content and publish it.
Analytic tools
iPhone developers receive daily sales statistics from Apple but the break-out is pretty basic. There is not much useful information provided beyond the user ID, purchased application ID, payment method and the amount paid. Developers have been complaining about the high-level information from the start and it is an obvious opportunity for Google to shine. It has the experience and the software to offer a much more comprehensive analytics solution than Apple does.
Multi-billion dollar marketplace
The App Store managed to rake in $30 million in one month. At this rate, the App Store is $360 million a year business; Apple even believes the AppStore may grow into a billion dollar business soon. However, its reach is limited to 6 million iPhone users only. And even if iPhone users have a reputation to be deep-pocketed and more willing to part with their money than the average cellphone user, a marketplace that is open to many more cellphone models and many types of content could surpass the AppStore volume.
Challenges
AM’s success isn’t set in stone and Google has several problems to solve before AM will become a serious player. For example, not all AM features will be available from day one. According to Google, the first batch of Android handsets will have beta version of AM that will deliver at least support for free applications. An updated AM version will be rolled "soon", with paid content and more features such as versioning, multiple device profile support, analytics, etc. To confront users who are paying for a handset with beta software isn’t necessarily a good idea.
Additionally, content will not be monitored as the goal of AM is to provide as much content as possible. The absence of filtering mechanism could lead to all kind of junk on AM that would certainly spoil the experience for users.
And, of course, there is Google’s decision to exclude the Bluetooth API from the first version of the Android platform. This may not affect every user, but at least those who like to use a wireless headset. And if you do more with Bluetooth than just using a headset, then this omission is simply not acceptable.
Despite these hurdles, we think that five distinct advantages should give AM a solid start. The service appears to be different and refreshing enough to be able to compete on a feature-by-feature basis with the App Store and Zune Marketplace.