Fragmentation. Curation. Recommendations. Take your pick: Android is getting
all three, compliments of a new Amazon-run application marketplace due to
launch later this year. Today, Amazon has launched the developer-facing part
of the store, inviting devs to submit their applications so that they’re ready
when the app store is ready for its consumer debut later this year (Amazon
isn’t giving a firm date on the full launch). The developer portal is at
http://developer.amazon.com.
We reported on this impending news back in September, so it isn’t a huge
surprise. But it’s going to bring some very interesting dynamics to the way
Android applications are purchased and distributed. In some senses, this is the
Android equivalent of Apple’s App Store — even more so than Google’s official
Android Market.
I spoke with Aaron Rubenson, category leader for Amazon Mobile Services, and
Ameesh Paleja, general manager for the Engineering Division of Mobile Services,
about the new store, and it clearly has the potential to be a big deal.
First, some background for those who don’t follow Android too closely. All
Google-endorsed Android devices ship with the Android Market, along with a
suite of other Google-made applications like Gmail. Android Market is a lot
like Apple’s App Store with a few key differences: it doesn’t have an approval
system, so developers can quickly submit and iterate on their applications. It
also tends to have a lot of junky applications that Apple would reject — things
that crash on launch on certain devices, or apps with that occasionally have
features that don’t work as expected. While Google’s terms do require
descriptions to be accurate, the general attitude is to let the market decide
what works, and it surfaces the top rated applications (most of the time) while
letting the junk sink.
Amazon is taking an approach that is more in line with Apple’s. Developers who
wish to appear on Amazon’s store have to get approval (Amazon says that the
process is currently taking about a week). And Amazon is going to have slightly
more stringent guidelines: your application has to work properly (i.e. it can’t
crash right off the bat) and it has to do what you say it does. It also has to
be safe. Android Market has many of these same requirements, but the difference
here is that Amazon checks apps before they’re deployed to its store, while
Google does so after problematic applications are reported.
However, unlike Apple’s screening policies (which were largely a mystery for
years and are still pretty wishy-washy), Amazon says it’s going to take a more
liberal stance as far as what’s allowed on the store. Porn and illegal apps are
not allowed, but your satire apps should be okay. And developers won’t have to
make any changes to their .apk files, either — it sounds like you can upload
the same ones to both Google’s and Amazon’s marketplaces (neither has any
exclusivity requirements).
The biggest departure from the mobile app stores we’ve grown accustomed to
involves pricing. Unlike Apple’s App Store and Android Market, where developers
can set their price to whatever they’d like, Amazon retains full control over
how it wants to price your application. The setup is a bit confusing: upon
submitting your application, you can set a ‘List Price’, which is the price
you’d normally sell it at. Amazon will use a variety of market factors to
determine what price it wants to use, and you get a 70% cut of the proceeds of
each sale (which is the industry standard). In the event that Amazon steeply
discounts your application, or offers it for free, you’re guaranteed to get 20%
of the List Price.
The bottom line here is that Amazon will be offering discounts on some
applications (possibly making them much cheaper than the same application on
Android Market or elsewhere). That sounds like it could be a recipe for
frustration for some developers, but Rubenson and Paleja say that they’re going
to do everything they can to maximize the amount of money developers make, and
that sometimes that involves adjusting pricing. They also say that Amazon has
an incentive to keep developers happy — and that developers can remove their
apps from the store with ten day’s notice. We’ll have to wait and see if the
system works.
So why, aside from these pricing differences, would consumers want to use this
Amazon App Store at all? There are a few answers to that question.
The first is that there are manufacturers making Android devices that decide
not to partner with Google to offer the official suite of Google applications
(including Android Market). Amazon is happy to offer their store to these
manufacturers, and it will work on any Android device version 1.6 or up. So if,
for example, Facebook releases its own flavor of Android down the line, they
could include Amazon’s App Store.
Reason number two: Amazon says that it can offer recommendations using the
technology that already exists on Amazon.com. This includes the obvious example
of showing applications that are similar to each other, but Amazon will also be
looking for correlations between physical products and apps — it might start
recommending a popular baseball app to someone browsing for a baseball bat, for
example. And it’s going to be promoting these applications as users browse
Amazon.com.
Amazon says it’s premature to talk about what the store itself will look like,
but they did share a few details about the consumer experience. First, payments
unsurprisingly will be done using Amazon’s one-click payment system (which
already has tens of millions of credit cards on file), though developers can
integrate whatever transaction system they want into the app itself.
Customers will be able to browse through applications from their phone or on
Amazon.com using their desktop computers, and they’ll be able to ‘send’
applications they buy to their mobile device. This sounds similar to what
Google showed off at Google I/O, but with one minor caveat: the apps won’t
actually be pushed and installed immediately, it sounds like you’ll have to
fire up the Amazon application to do that.
So how will people actually get access to this Amazon marketplace from their
Android device? This is going to prove a bit tricky for some users — Amazon
will offer a walkthrough instructing users on how to do this, but it will
require you dig into the settings menu on the device and allow installation
from “Unknown Sources”. It’s easy to find if you know what you’re doing, but it
sounds a bit scary. However, Amazon is also in talks with various partners, and
we’ll likely be seeing plenty of applications shipping with the market
pre-installed.
Now, Amazon isn’t the only company that’s making alternative Android App Stores
— Verizon is also doing one of its own, and there will surely be more to
follow. But Amazon is in a position to establish itself as the de facto
non-Google App Store — and that could prove to be very important. As Kevin
Marks wrote recently (and we discussed further), Android is going to
increasingly fragment into flavors that aren’t as closely tied to Google, and
we’ll start seeing more alternative versions of the core ‘Google Apps’.
Amazon’s App Store would fit in nicely as one part of this alternative suite.
This will also bring pricing battles over the same applications into the
equation (which hasn’t really been possible when app distribution is
monopolized by a single storefront). And, yes, it could lead to some user
confusion, though Amazon has a strong incentive to keep this as straightforward
as it can.
Make no mistake — this isn’t going to replace Google’s Android Market by any
means. Google’s store will have better international support for some time
(Amazon is US-only at launch) and it will still be shipping on plenty of phones
by default. But given how many Android devices are going to be out there in the
near future (they’re activating over 300,000 a day), there’s certainly going to
be enough customers to keep more than one store in business.
I asked a few times about timing for the consumer launch but couldn’t get
anything more specific than “this year”. However, the team did say that the
mobile storefront is being built with tablets in mind, so my guess is that we
can expect this to launch after Android tablets running Honeycomb are on the
market (which will probably be around April or later).
I asked the Amazon team how Google felt about the launch — there was an audible
chuckle, and they said something about Android being on an amazing growth
trajectory and that they were fond of its openness.
Reached for comment, Google gave this statement:
Android is an open platform – and entities other than Google are free to create
their own content and marketplaces, much like the web.
I bet they’re thrilled.
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