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Facebook pushes back against Apple’s App Store fees

Facebook joined the growing ranks of companies publicly complaining about the 30% fee that Apple collects on payments made through its App Store.

Those complaints came midway through a blog post about the social network’s new feature supporting paid online events. Facebook said that to support struggling businesses, it won’t be collecting any fees on those events, at least for the next year, which means that those businesses keep 100% of payments on the web and on Android.

But Facebook said that won’t be the case on iOS, due to App Store fees, and it took aim at Apple with surprisingly direct language (at least, direct for a corporate blog post):

We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue. Because this is complicated, as long as Facebook is waiving its fees, we will make all fees clear in our products.

Facebook Online Events

iOS purchase flow on left, Android purchase flow on right. Image Credits: Facebook

To that end, the post includes screenshots of how the events payment flow will look on iOS and Android . On Android, it says, “Facebook doesn’t take a fee from this purchase,” while on iOS, it says, “Apple takes 30% of this purchase.”

Facebook said this language is included in the app update “which we submitted to Apple today for approval” — suggesting that there’s a possibility that the update won’t be approved.

This comes just about 24 hours after Fortnite was removed from the App Store, after Epic Games introduced direct payments into its hit title. It seemed like Epic was intentionally trying to provoke a fight, with the company quickly announcing a lawsuit against Apple and releasing a short in-game video parodying Apple’s famous 1984 commercial, with Apple cast as the villain. (The game publisher is in a similar battle with Google and Android.)

While Apple’s 30% fee has been around for as long as the App Store itself, the issue came to the forefront earlier this summer after Basecamp got into a public feud with the company over its subscription email app Hey, for which the developer tried to circumvent App Store fees by only accepting subscription payments on its website.

Apple’s Phil Schiller told us at the time that the controversy was not prompting the company to reconsider any of its rules, which he said were designed for a better app experience — to avoid situations where “you download the app and it doesn’t work.”

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Facebook launches support for paid online events

Businesses will now be able to monetize online events on Facebook, thanks to a new feature that the social network is launching in the United States and 19 other countries today.

In a call with reporters, Head of Facebook App Fidji Simo said that Facebook’s Events feature was designed for in-person events, but with the COVID-19 pandemic and resulting social distancing orders, the company “really quickly pivoted” to supporting online events.

In fact, Simo said that in June of this year, live broadcasts on Facebook Pages doubled compared to the same period in 2019.

Simo also outlined the new feature in a Facebook blog post. Businesses will be able to host larger events through Facebook Live, and the company is also testing the ability to host smaller, more interactive gatherings in Messenger Rooms. The goal is to give business owners the ability to create the event, set the price, promote the event, collect the payment and host the event itself all from one place.

Apparently some of the paid events that have already been organized during tests with early users include talks, trivia, podcast recordings, boxing matches, cooking classes, meet-and-greets and fitness classes.

Facebook Online Events

iOS purchase flow on left, Android purchase flow on right. Image Credits: Facebook

“With social distancing mandates still in place, many businesses and creators are bringing their events and services online to connect with existing customers and reach new ones,” Simo wrote. “People are also relying on live video and interactive experiences more when they can’t come together physically.”

Simo said Facebook will not be collecting any fees from paid online events for at least the next year. So on the web and on Android “in countries where we have rolled out Facebook Pay,” businesses should be able to keep 100% of their online events revenue. That won’t, however, be the case on iOS, and Simo’s blog post includes a surprisingly direct dig at Apple:

We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue. Because this is complicated, as long as Facebook is waiving its fees, we will make all fees clear in our products.

To that end, the post also includes an iOS screenshot (“which we submitted to Apple today for approval”) showing that the purchase button will include a small text message saying “Apple takes 30% of this purchase” beneath the purchase button (vs. “Facebook doesn’t take a fee from this purchase” on Android).

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More thoughts on growing podcasts

Julian Shapiro
Contributor

Julian Shapiro is the founder of BellCurve.com, a growth marketing team that trains startups in advanced growth, helps hire senior growth marketers and finds vetted growth agencies. He also writes at Julian.com.

We’ve aggregated many of the world’s best growth marketers into one community. Twice a month, we ask them to share their most effective growth tactics, and we compile them into this Growth Report.

This is how you stay up-to-date on growth marketing tactics — with advice that’s hard to find elsewhere.

Our community consists of startup founders and heads of growth. You can participate by joining Demand Curve’s marketing training program or its Slack group.

Without further ado, on to our community’s advice.


More thoughts on growing podcasts

Insights from Harry Morton of Lower Street.

Podcast growth is all about relationships. To increase your listenership, consider partnering with:

  1. Other podcasters. Do an episode swap where you play an episode of your show on theirs, and vice versa. Make sure the two podcasts share similarly minded audiences.
  2. Curators. Every podcast aggregator has someone responsible for curating their featured content. Look them up on LinkedIn. Reach out via email. Be their friend. Send them only your best stuff.
  3. Subscribers. You rise in Apple’s podcast charts (which account for 60% of podcast listenership) by having a subscriber growth spurt in a concentrated period of time (24-48 hours). So, when you release an episode, immediately run your audience promotions aggressively and all at once.

Increasing referral incentives might not increase referrals

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Big tech goes to Congress remotely

This week, the CEOs of Facebook, Apple, Alphabet and Amazon were called before the House’s Antitrust Subcommittee to defend the vast empires they’ve built. Jeff Bezos, Tim Cook, Sundar Pichai and Mark Zuckerberg faced questions about how their business practices propelled them into the market-dominant giants they are today. They lead four of the top six most valuable public companies in existence and are widely regarded as reshaping the consumer world, both within the tech industry and beyond. Watch TechCrunch reporters Taylor Hatmaker, Devin Coldewey and Alex Wilhelm discuss what happened during the hearing and what this might mean for the future of big tech.

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Bangladesh regulator orders telcos to stop providing free access to social media

Bangladesh’s regulator has ordered telecom operators and other internet providers in the nation to stop providing free access to social media services, becoming the latest market in Asia to take a partial stand against zero-rating deals.

Bangladesh Telecommunication Regulatory Commission, the local regulator, said late last week that it had moved to take this decision because free usage of social media services had spurred their misuse by some people to commit crimes. Local outlet Business Standard first reported about the development. Bangladesh is one of the largest internet markets in Asia with more than 100 million online users.

Technology companies such as Facebook and Twitter have struck partnerships, more popularly known as zero-rating deals, with telecom operators and other internet providers in several markets in the past decade to make their services free to users to accelerate growth. Typically, tech companies bankroll the cost of data consumption of users as part of these deals.

In Bangladesh, such zero-rating deals have been popular for several years, said Ahad Mohammad, chief executive of Bongo, an on-demand streaming service, in an interview with TechCrunch (Extra Crunch membership required) .

Grameenphone and Robi Axiata, two of the largest telecom operators in Bangladesh, enable their mobile subscribers to access a handful of services of their partners even when their phones have run out of credit. Both telecom firms have said they are in the process to comply with Dhaka’s order.

It remains unclear whether Free Basics, a program run by Facebook in dozens of markets through which it offers unlimited access to select services at no cost, will continue its presence in Bangladesh after the nation’s order. Facebook relies on telecom networks to offer data access for its Free Basics program.

In Bangladesh, Facebook struck deals with Grameenphone and Robi Axiata, according to its official website, where Facebook continues to identify Bangladesh among dozens of markets where Free Basics is operational.

Several nations in recent years have balked at zero-rating arrangements — though they have often cited different reasons. India banned Free Basics in early 2016 on the grounds that Facebook’s initiative was violating the principles of net neutrality.

Free Basics also ended its program in Myanmar and several other markets in 2017 and 2018. Facebook did not respond to requests for comment.

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Marketing, PR and brand building, oh my! TechCrunch Early Stage goes down July 21 and 22

Your product may solve problems. It may cost less and do more. It may very well change the world. But unless you can get the word out, ensuring the right group of people know about it and are willing to use it, pay for it and evangelize it, then your hard work is in vain.

At TechCrunch Early Stage, we’ll hear from some of the world’s top minds in the fields of marketing and brand building. They’ll talk through different growth marketing tactics, from creating growth assets for paid channels to capitalizing on podcasts to SEO to email. They’ll cover the complicated world of PR, and they’ll teach us about how to develop a brand that users can relate to.

Of course, this is just one slice of the pie. At Early Stage, experts across a wide variety of startup core competencies — fundraising, legal, recruiting, tech stack, scaling and more — will take the virtual stage to give early-stage founders the tools they need to get out there and succeed. What’s more, these experts have made time to answer audience questions, so don’t be shy!

Here’s a look at all the marketing sessions you can expect at the show:

Why should anyone care? (Making your brand stand out) with Caryn Marooney

Startups often struggle to create a narrative that stands out. As a general partner at Coatue, former head of Comms at Facebook and co-founder of the OutCast Agency, Caryn Marooney has seen it all. Come learn the brand and messaging framework that can help your company stand out (while staying true to yourself.)

Growth Marketing: Minimum viable email with Susan Su

Love it or hate it, email is here to stay. But understanding where it fits into the conversion funnel and how to maximize its impact can be arduous. Learn from Sound Ventures partner Susan Su how to optimize open rates, deliverability, unsubscribes and conversions for consumer and enterprise products alike.

How to build a high-performance SEO engine with Ethan Smith

Hear from Ethan Smith, who has worked with brands like MasterClass, Ticketmaster and Thumbtack, as he shares some of the most effective modern SEO strategies. Starting with a deep understanding of the user and their intent, the most successful modern SEO strategies focus on building a data-driven approach to drive user experience, content and conversion to ultimately beat the competition.

Be the best at preparing for the worst with Margit Wennmachers and Miguel Helft

Inevitably, something will go wrong — from product recalls and lawsuits to executive firings and sexual harassment allegations, so you better be prepared. Hear from Margit Wennmachers, operating partner at Andreessen Horowitz and a co-founder of OutCast Communications (now The OutCast Agency) and Miguel Helft, editorial director at Message Lab, about how to develop a framework for crisis and withstand through tough times.

Growth Marketing: Podcasts as a secret weapon with Krystina Rubino and Lindsay Piper Shaw

Podcast advertising is widely viewed as a nascent medium, but smart companies know it can be a powerful channel in their marketing mix. Opportunity is ripe — get in early and you can own the medium, box out competitors and catapult your growth. Krystina Rubino and Lindsay Piper Shaw have launched and scaled successful podcast ad campaigns for early-stage startups and household name brands and will be sharing their strategies for companies to succeed in this often misunderstood channel.

How to get people obsessed with your brand with Emily Heyward

During her 12-year tenure running Red Antler, one of the leading brand companies for startups and new ventures, Emily Heyward has launched more brands than anyone. In this session for TechCrunch Early Stage, she’ll share the modern rules of brand building, breaking down the traditional notions of how modern brands look, feel and behave. Covering a few case studies and tactical applications, Emily will outline the best practices for driving obsession from day one while also building a foundation for long-term growth.

How to create great growth assets for paid channels with Asher King Abramson

Learn about the right ways and wrong ways to create great assets for paid channels, landing pages and more in this teardown workshop with Asher King Abramson, a top growth marketer who has worked with 100+ successful startups. Submit your landing page and ads beforehand for a chance to receive feedback live onstage.

A brand personified with Anna Pickard

Anna Pickard is the head of Brand Communications at Slack, responsible for establishing the company’s voice and tone. Hear Anna share how to bring together the various functions of your organization to create a distinctly unique brand voice that engages and delights customers.

Early Stage goes down July 21 and 22. You don’t want to miss it. Tickets are almost gone — register for your ticket here.

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AR 1.0 is dead: Here’s what it got wrong

The first wave of AR startups offering smart glasses is now over, with a few exceptions.

Google acquired North this week for an undisclosed sum. The Canadian company had raised nearly $200 million, but the release of its Focals 2.0 smart glasses has been cancelled, a bittersweet end for its soft landing.

Many AR startups before North made huge promises and raised huge amounts of capital before flaring out in a similarly dramatic fashion.

The technology was almost there in a lot of cases, but the real issue was that the stakes to beat the major players to market were so high that many entrants pushed out boring, general consumer products. In a race to be everything for everybody, the industry relied on nascent developer platforms to do the dirty work of building their early use cases, which contributed heavily to nonexistent user adoption.

A key error of this batch was thinking that an AR glasses company was hardware-first, when the reality is that the missing value is almost entirely centered on missing first-party software experiences. To succeed, the next generation of consumer AR glasses will have to nail this.

Image Credits: ODG

App ecosystems alone don’t create product-market fit

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Facebook tests Forecast, an app for making predictions about world events, like COVID-19

Forecast, a new project from Facebook’s internal R&D group, NPE Team, is launching today to build a community around predictions. The iOS app will allow users to ask questions and then use in-app points to make predictions about what might happen in the future. Users can also create, discuss and view these crowdsourced predictions.

At launch, only invited participants in the U.S. and Canada will be allowed to make predictions and engage in conversations while the app is in beta testing. But these predictions and related discussions will be publicly accessible on the Forecast website, and made shareable.

Before today, Facebook tested the product internally with a small set of employees. Their initial forecasts will form the initial core content in the app at launch.

Starting now, Facebook will invite members of the health, research and academic communities to make predictions about the COVID-19 pandemic and its impact on the world.

Image Credits: Facebook

At a time when Facebook and other major tech platforms are under fire for their role in aiding the spread of misinformation, fake news, propaganda, conspiracy theories and other non-factual content presented as truth, an app focused on making “guesses” about the future seems ill-advised — however educated those guesses may be. This is particularly concerning because much of the app’s content will focus on guesses about COVID-19.

Forecast’s predictions may help show what people are thinking, but COVID-19 isn’t a game. To understand the world, scientists form a hypothesis, which is essentially an expanded form of an educated guess. But they don’t then crowdsource voting to determine if a hypothesis is true — they test, experiment, gather supporting data, try to prove and disprove the hypothesis and ultimately aim to publish their findings and have them peer-reviewed.

The Forecast app turns the hypothesis into the end result, in a way. The app lets users make a forecast and explain their reasoning — in other words, form a hypothesis. But instead of doing the work to test the forecast, through the application of the scientific method, Forecast will track the votes a given question receives.

For example: “When will the first COVID-19 vaccine candidate begin phase 3 trials?” or “When will most U.S. residents be treated with a COVID-19 vaccine?” In non-COVID questions, you may come across something like “Will the US Presidential Election be fully or partially postponed?” 

Questions will be reviewed by the Forecast team and edited for clarity, if needed. Users will be notified if their question is published.

At some point, the question will be determined as “settled,” based on an elapsed time period or because an event has occurred. For instance, if users were guessing when a vaccine would be released, and then it’s actually released, the questions around that topics would be “settled.”

Forecast’s polls are given aesthetically pleasing charts and graphs, which can be shared outside the app. That means users could start posting these guesses and the crowdsourced responses to sites like Facebook, where the line between fact and fiction has already blurred. That could further complicate people’s understanding of what is already a complex topic: the COVID-19 pandemic.

Facebook users who see these shared “forecasts” may believe they have some basis in science and research, when instead, they are the result of a social polling app.

Of course, there is some fun in betting on world events and seeing if they turn out to be true, and there is even some value in organizing a wider community’s collective “best guesses” about a future event to gain an understanding of what people are thinking at a given time. Crowdsourced predictions have their place, as well. But spreading out specific, COVID-19 predictions to Facebook seems like an idea that’s fraught with potential problems and complications.

And Facebook’s goal here is only to test its own hypothesis — that a standalone, community-based predictions app that rewards a participatory audience with social credit will surface insightful voices and thoughtful discussions.

In the end, however, it seems like Facebook is looking for some angle that could prompt thought leaders to engage in meaningful discussions about subjects they know best on a Facebook platform. These sorts of discussions are difficult to have in Facebook’s comments section around a post — as comments, more often than not, are a place people go to troll, argue, threaten and otherwise derail a conversation. Forecast organizes these experts around a topic and allows them to debate. As a self-contained space with a vetted crowd of participants, that could be interesting. Making the data broadly shareable is an issue, however.

Facebook says the questions in Forecast will be moderated for clarity using Forecast’s own moderation guidelines and Facebook’s Community Standards. That means questions can’t mention death, or sexual or violent assault of any individual, including public figures. (This isn’t meant to be some sort of new internet Death Clock, for example.) Hate speech isn’t allowed. Questions around illegal content or those involving personal information also aren’t permitted, along with other guidelines detailed here.

The Forecast app is live on the iOS App Store here.

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How Reliance Jio Platforms became India’s biggest telecom network

It’s raised $5.7 billion from Facebook. It’s taken $1.5 billion from KKR, another $1.5 billion from Vista Equity Partners, $1.5 billion from Saudi Arabia’s Public Investment Fund$1.35 billion from Silver Lake, $1.2 billion from Mubadala, $870 million from General Atlantic, $750 million from Abu Dhabi Investment Authority, $600 million from TPG, and $250 million from L Catterton.

And it’s done all that in just nine weeks.

India’s Reliance Jio Platforms is the world’s most ambitious tech company. Founder Mukesh Ambani has made it his dream to provide every Indian with access to affordable and comprehensive telecommunications services, and Jio has so far proven successful, attracting nearly 400 million subscribers in just a few years.

The unparalleled growth of Reliance Jio Platforms, a subsidiary of India’s most-valued firm (Reliance Industries), has shocked rivals and spooked foreign tech companies such as Google and Amazon, both of which are now reportedly eyeing a slice of one of the world’s largest telecom markets.

What can we learn from Reliance Jio Platforms’s growth? What does the future hold for Jio and for India’s tech startup ecosystem in general?

Through a series of reports, Extra Crunch is going to investigate those questions. We previously profiled Mukesh Ambani himself, and in today’s installment, we are going to look at how Reliance Jio went from a telco upstart to the dominant tech company in four years.

The birth of a new empire

Months after India’s richest man, Mukesh Ambani, launched his telecom network Reliance Jio, Sunil Mittal of Airtel — his chief rival — was struggling in public to contain his frustration.

That Ambani would try to win over subscribers by offering them free voice calling wasn’t a surprise, Mittal said at the World Economic Forum in January 2017. But making voice calls and the bulk of 4G mobile data completely free for seven months clearly “meant that they have not gotten the attention they wanted,” he said, hopeful the local regulator would soon intervene.

This wasn’t the first time Ambani and Mittal were competing directly against each other: in 2002, Ambani had launched a telecommunications company and sought to win the market by distributing free handsets.

In India, carrier lock-in is not popular as people prefer pay-as-you-go voice and data plans. But luckily for Mittal in their first go around, Ambani’s journey was cut short due to a family feud with his brother — read more about that here.

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Mapillary, the crowdsourced database of street-level imagery, has been acquired by Facebook

Mapillary, the Swedish startup that wants to take on Google and others in mapping the world via a crowdsourced database of street-level imagery, has been acquired by Facebook, according to the company’s blog. Terms of the deal aren’t being disclosed.

The Mapillary team and project will become part of Facebook’s broader open mapping efforts. Mapillary also says its “commitment to OpenStreetMap stays.”  Writes Mapillary co-founder and CEO Jan Erik:

From day one of Mapillary, we have been committed to building a global street-level imagery platform that allows everyone to get the imagery and data they need to make better maps. With tens of thousands of contributors to our platform and with maps being improved with Mapillary data every single day, we’re now taking the next big step on that journey.

As Erik notes, Facebook is known to be “building tools and technology to improve maps through a combination of machine learning, satellite imagery and partnerships with mapping communities.” Mapping has immediate use-cases for the social networking behemoth, such as Facebook Marketplaces and its local business offerings, while another application is augmented reality.

This saw it recently acquire another European startup, Scape, news that TechCrunch broke in February. Founded in 2017, Scape Technologies was developing a “Visual Positioning Service” based on computer vision, which lets developers build apps that require location accuracy far beyond the capabilities of GPS alone. The technology initially targeted augmented reality apps, but also had the potential to be used to power applications in mobility, logistics and robotics. More broadly, Scape wanted to enable any machine equipped with a camera to understand its surroundings.

Mapillary is also the latest “open” project to join and now be funded by Facebook. Last December, it quietly acquired U.K.-based Atlas ML, the custodian of “Papers With Code,” the free and open resource for machine learning papers and code.

Returning to Mapillary, the startup is keen to stress that it will continue being a “global platform for imagery, map data, and improving all maps.” “You will still be able to upload imagery and use the map data from all the images on the platform,” says Erik. It is also changing the license to permit commercial use:

Historically, all of the imagery available on our platform has been open and free for anyone to use for non-commercial purposes. Moving forward, that will continue to be true, except that starting today, it will also be free to use for commercial users as well. By continuing to make all images uploaded to Mapillary open, public, and available to everyone, we hope to enable new use cases, and grow the breadth of coverage and usage to benefit mapping for everyone. While we previously needed to focus on commercialisation to build and run the platform, joining Facebook moves Mapillary closer to the vision we’ve had from day one of offering a free service to anyone.

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