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Competing in an actually efficient market is terrible
It looks like (fingers crossed) my job in 2016 will involve making life easier for mobile app developers. I don't envy them, honestly.
The likely end state is the web becomes a niche product used for things like 1) trying a service before you download the app, 2) consuming long tail content (e.g. link to a niche blog from Twitter or Facebook feed).

This will hurt long-term innovation from a number of reasons:

1) Apps have a rich-get-richer dynamic that favors the status quo over new innovations. Popular apps get home screen placement, get used more, get ranked higher in app stores, make more money, can pay more for distribution, etc. The end state will probably be like cable TV – a few dominant channels/apps that sit on users’ home screens and everything else relegated to lower tiers or irrelevance.

2) Apps are heavily controlled by the dominant app stores owners, Apple and Google. Google and Apple control what apps are allowed to exist, how apps are built, what apps get promoted, and charge a 30% tax on revenues.
- The Decline of the Mobile Web

So despite the massive growth in mobile usage "it has gotten harder, not easier, to innovate on the Internet with the smartphone emerging as the platform of choice vs the desktop browser" and as a result VC firms (or USV at least) are less interested in taking risk there. A year and a half later they see more of the same.

But maybe better app discovery - potentially via models for using apps that don't require an install - can help.

last timestamped: 13:19:52 13-Nov-2015
in categories:Tech/Business, Tech/Mobile





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