Why is PostSecret the Best-Selling iOS App in America this Week?

  • In its first four days of availability, the PostSecret iTunes app has drawn more than 100,000 users sharing more than 50,000 secrets.
  • The $1.99 app is an extension of the popular community art project that started with people mailing in postcards containing their secrets and later spawned five New York Times bestselling books and a 2.1 million member online community.
  • “Sharing a secret and connecting with someone that has a similar secret provides a cathartic release for people to overcome loneliness,” explains creator Frank Warren. “While the PostSecret app allows secret sharers to connect, they are doing so in a safe, anonymous and protected environment where no personal information exchanged.”
  • Wired.com adds: “At a time when we often don’t know if our connection to our gadgets is pulling us away from actual human interaction or revealing too much about who we are and where we go, creating an app that collects our most intimate secrets and keeps us anonymous — while simultaneously making us feel closer — could prove to be a welcome relief.”
  • An Android version of the app is expected later this year.

The Rumors are True: First Look at the Amazon Kindle Tablet

  • Amazon is reportedly close to production on its long-rumored tablet device. TechCrunch provides a fascinating first-person report on the Android-based Kindle (but sorry, no pictures yet).
  • The device will initially feature a 7-inch color touchscreen with a 10-inch model coming next year. The interface is Amazon’s and the main screen resembles iTunes Cover Flow with a carousel of books, apps, movies. It is built on top of pre 2.2 Android. It will NOT be getting Honeycomb or Ice Cream Sandwich.
  • It will be integrated with Amazon’s content store, which is one-click away. Apps will be available though Amazon’s Android App Store (and not Google’s Android Market). Additionally, the book reader is the Kindle app, the music player is Amazon’s Cloud Player and the movie player is Amazon’s Instant Video player. There is no camera.
  • The device is expected to include a free subscription to Amazon Prime, which will provide access to Amazon Instant Video.
  • TechCrunch anticipates an end of November launch at a cost of $250. There are many more details in the article…

iTunes Match: Supports Downloading AND Streaming from the Cloud

  • Apple’s iTunes Match went live to developers for testing this week and music “streaming” from the cloud is reportedly already up and running.
  • If the hype is accurate, the TechCrunch article header from Dennis Kuba’s story submission may prove telling: “With iTunes In The Cloud, Apple Under-Promises And Over-Delivers.”
  • Apple enthusiasts are excited to see what shakes out this fall with iOS 5 and iCloud. Yesterday, TechCrunch reported: “Tonight brought perhaps the biggest surprise revelation yet: iTunes in the Cloud will support streaming as well as downloading of music.”
  • There is also speculation that this announcement may lead to a possible “cloud iPhone.” Rumors are making the rounds that Apple might unveil a low-cost iPhone 4 (with minimal on-board storage) alongside its new iPhone 5 release. If iTunes has streaming functionality, the low-cost version of the iPhone could rely on the cloud for content.
  • Be sure to check out the iTunes Match videos included in the post.
  • TechCrunch recently added an update: “There’s some debate going on right now about whether or not this is technically streaming. Even Apple is avoiding the term, as Peter Kafka points out. There are two reasons for this — reasons Google follows as well with their service.”

New Direction: Apple Pulls The Plug on TV Rentals from iTunes

  • There has been a fair amount of recent press regarding changes to Apple’s TV rental offerings. Peter Kafka, reporting for The Wall Street Journal, writes: “Apple has completely removed customers’ ability to rent shows from iTunes; the remaining options are to buy individual episodes or in some cases a ‘Season Pass’ for a year’s worth of shows.”
  • Apple spokesman Tom Neumayr says people prefer buying TV shows instead of renting, which not surprisingly may be more in line with the needs of customers interested in Apple’s cloud initiatives. “iTunes in the Cloud lets customers download and watch their past TV purchases from their iOS devices, Apple TV, Mac or PC allowing them to enjoy their programming whenever and however they choose,” Neumayr said.
  • According to a Fox statement: “After carefully considering the results of the rental trial, it became clear that content ownership is a more attractive long-term value proposition both for iTunes customers and for our business. To further enhance the value of ownership, we are working with Apple to make content available within their new cloud-based service.”

iTunes on Movie Share Upswing: Report Credits AirPlay and iPad

  • The recent IHS Screen Digest Media Research report indicates that Apple’s iTunes held the number one spot for movie electronic sell-through (EST) and Internet video on demand (iVOD) with 65.8 percent of the market in the first half of 2011. The Zune Video Marketplace was second with 16.2 percent, while Walmart’s Vudu came in third with 5.3 percent.
  • The research suggests much of Apple’s success can be traced to AirPlay which allows you to stream wirelessly to other devices including TVs.
  • “IHS believes that the ability to stream media from Macs or iOS devices to an Apple TV or third-party AirPlay receiver has prompted users to buy more movies from iTunes — presumably so they can AirPlay them to somewhere else,” reports Ars Technica.
  • It should be noted that Amazon spent this period shifting its strategy to streaming video on demand (SVOD), which IHS ranks in a separate space from iVOD. According to the article: “Amazon still saw a small bump from 4 percent in the first half of 2010 to 4.2 percent a year later, showing that users are still sticking by Amazon’s ‘old’ service.”

New Vonage App Allows International Calls via iTunes

  • Vonage has launched a new app that allows users to make international VoIP calls and pay via iTunes.
  • The new app — dubbed Time to Call — works on iOS devices including the iPhone, iPad and iPod touch.
  • If the calls are limited to 15 minutes or less, there is no need for a Vonage account.
  • “Using Time to Call, 15-minute calls to 100 countries range from $0.99 to $1.99,” reports Digital Trends, “although fees for the remaining 90 countries Vonage can reach can be as high as $9.99 for that same 15 minutes — taxes apply to all calls.”
  • “Not only does this service offer tremendous value for international callers dialing from their home countries, it also provides a great solution for international travelers who want to avoid the bill shock associated with international calls and roaming charges when they call back home,” explained Vonage CEO Marc Lefar in a statement.

Time Inc. to Offer its Magazines on Multiple Platforms

  • Time Inc. announced it will offer all of its 21 magazines including Time, Sports Illustrated, People and Fortune on just about every tablet platform.
  • Look for Time’s publications on iTunes, Android’s store, HP’s new tablet, Next Issue Media, and Nook by the end of this year. (There is no mention of RIM’s Playbook or Kindle yet.)
  • To date, Time’s digital magazine and content apps have been downloaded more than 11 million times.
  • “Note that while the release mentions ‘digital subscriptions,’ what that really means is ‘digital-only subscriptions available everywhere but iTunes,’ reports the Wall Street Journal. “Apple and Time Inc. still haven’t come to terms on subscription rules, so right now the only way to get a digital subscription for the iPad is to buy a subscription package that also includes print.”

Warner Bros. Rolls Out Flixster Collections Video Service this Week

  • Time Warner CEO Jeff Bewkes announced the availability of Flixster Collections, a social movie portal that went into public beta this week.
  • The service, a revamped version of the Flixster product acquired earlier this year, encourages users to share what they’ve watched with friends.
  • If there’s something you want to see, for example, Flixster directs you back to Amazon, iTunes, Hulu and Netflix (as well as your hard drive, if you let it). There are also links for theatrical films, including reviews, trailers and ticketing services.
  • “You can also imagine how this will tie in to Ultraviolet, the cloud/locker system for video that Warner and a big coalition of movie studios and tech companies (except for Apple and Amazon) are pushing,” writes Peter Kafka in All Things D.
  • So far, Flixster Collections is available for PCs and Macs, but no mobile app yet.

Apple Expected to Launch iTunes Replay in Coming Weeks

  • Apple is rumored to be securing the rights to allow downloading of TV shows and movies in addition to previously announced music in a new service called iTunes Replay.
  • The service will allow users to access movies they purchased since January 1, 2009. Some content will only be available for download five times.
  • Streaming will be to Apple TV and most likely iOS mobile devices.
  • AppAdvice reports: “The name, iTunes Replay is currently being used internally, and is planned to be kept when Apple makes this public. You should expect this to go public in the coming weeks, as the necessary changes are being pushed to Apple’s servers at the moment.”

Sundance Institute will Distribute Indies Online

  • In an effort to help emerging artists reach wider audiences, the Sundance Institute has partnered with online video outlets including Hulu, Amazon, Netflix, iTunes, YouTube and SundanceNow.
  • The deals are not exclusive to any one platform, so films can be made available simultaneously on competing sites.
  • Films will be packaged under the Sundance name as part of its recently launched Artist Services Initiative. Marketing guidance will also be provided to filmmakers through the new Web-based program.
  • New Video will serve as the aggregation partner for online distribution, taking a small cut of the revenues. However, the online services will not purchase the movies, enabling the filmmakers to retain their copyrights.
  • Sundance hopes that the online initiative will provide an audience for films that typically do not find conventional distribution. First to be distributed: “Connected: An Autoblogography about Love, Death & Technology” by Tiffany Shlain and “On the Ice” from Andrew Okpeaha MacLean.

Access to Month-Long iTunes Festival Available via iOS App

  • The annual iTunes Festival kicked off Friday in England, streaming select performances live in HD to iPads and iPhones for those who downloaded the free app.
  • The event is scheduled for 31 consecutive nights at the Roundhouse in London.
  • Paul Simon was the first artist to take the stage. Additional headliners include Coldplay, Linkin Park, My Chemical Romance, Foo Fighters, Jimmy Eat World, Moby and more.
  • Apple funds the event by recording the live sets and selling them exclusively on iTunes.
  • Wired suggests an alternative business model: “But it makes me wish more festival organizers would do this the other way around — free recordings of the gigs you paid to see at festivals. Or perhaps a handful of free tracks to choose from an entire festival’s lineup, with the complete collection put on sale. There’s no better live recording than one created during the night you attended.”

Apple Close to Launching Cloud-Based Music Service

Earlier this month, ETCentric reported that Apple has been planning a cloud-based music locker service that will enable its customers to stream music to smartphones, tablets or computers. As progress continues regarding deals with the major music labels, the new service may launch sooner than originally reported — with rumors speculating possibly as soon as June 6 in San Francisco at the Apple Worldwide Developers Conference (WWDC 2011).

The Apple proposal is different from Amazon’s recent Cloud Drive rollout and Google’s Music locker service (the beta for which was announced at Google I/O). As reported, Apple is seeking paid licenses from the labels for its service (Amazon and Google launched their services without gaining such approval). Bloomberg reports that Apple has reached agreements with three of the major labels (Sony, EMI and Warner) — with Universal Music Group close to a deal.

By jumping the gun, Amazon and Google may have helped Apple position itself to take the lead in this arena. As TechCrunch reports: “So the labels, which for the better part of a decade now have been looking for someone, anyone to help counter Apple’s power in their business, is turning right back to Apple when they need help. And Apple will obviously gladly welcome them with open arms. After all, with these licenses, Apple will have secured the cloud music high ground despite being the last to launch. Think about it. With these agreements, Apple is likely going to be able to do the one thing that is absolutely crucial for cloud music to take off: offer library syncing without uploading.”

Plus, Apple has the benefit of an existing consumer base, with 200 million people who already have iTunes accounts. There has also been speculation that the cloud music service may be integrated with a revamped version of MobileMe, Apple’s subscription-based collection of online services and storage.

CNET raises two interesting points:

1. There’s no doubt who the top-four record companies are pulling for in the cloud music wars. They hope Apple’s service makes the other two guys look shabby by comparison. The thinking is that if Apple’s service eclipses those of its rivals, it will prompt Amazon and Google to pay the labels’ licensing rates.

2. What nobody has proven yet is whether consumers even want the cloud. CNET has reported that Apple is likely to charge a subscription fee eventually for its cloud service. Subscription music services, such as Rhapsody, have a spotty record at attracting audiences.

Related TechCrunch article: “Google And Amazon May Have Just Handed Apple The Keys To The Cloud Music Kingdom” (5/18/11)

Related Wall Street Journal article: “For a Song, Online Giants Offer Music in a Cloud” (5/19/11)

Related Patently Apple article: “Whoa! Apple Patent Confirms iTunes Cloud Media Services” (5/19/11)

Related CNET article: “Exclusive: Apple near cloud-music deals” (5/18/11)

Related TechCrunch article: “Without The Labels, Google’s Music Locker Service Will Look Like Apple’s Ugly Sibling. Again.” (5/9/11)

Spotify Launches Music Download Store and iPod Syncing

A new app from Swedish start-up Spotify may attempt to take on Apple’s iTunes. The European online music service recently announced a new MP3 download store in addition to the ability to sync music on iPods and related devices.

According to a report last week on PCMag.com: “Spotify features include the ability to: search, browse, and play millions of tracks; stream over Wi-Fi or 2.5/3G; access offline playlists; on-the-fly sync; a what’s new tab; wireless sync of your local files to your phone; and the ability to tag favorites into a special list. One of the most frequent requests, however, was the abilty to sync that music to Apple’s iPod, something Spotify said is now a reality. Just connect an iPod to your computer via USB and it will appear in the ‘devices’ section of the Spotify sidebar. You can then sync MP3s in your Spotify playlists to the iPod.”

Spotify has 13 million tracks available and more than 1 million subscribers. It features a free, ad-supported option and a premium service for unlimited access. The company says that its iPhone and Android app can now be used by its free service customers.

Spotify is doing well in Europe, but has yet to launch in the U.S. It has inked deals with EMI and Sony for U.S. service and if it can enter into an agreement with Universal Music Group and Warner Music it may become a serious competitor for the likes of Rhapsody and iTunes.

Since Apple has a track record of updating software to prevent third-party iPod syncing, it will be interesting to see how it responds to Spotify’s efforts.

Updated ETCentric post (and Facebook-Spotify news): “Is Facebook Poised to become THE Social Entertainment Operating System?” (5/31/11)

Related Bloomberg Businessweek article: “Here’s Spotify’s Master Plan: Tackle iTunes Head On” (5/5/11)

Related CNET article: “Spotify cozies up to iPod, takes aim at iTunes” (5/4/11)

Will Apple become the Digital Gatekeeper for Print Media?

San Jose Mercury News offers an interesting look at the pros and cons regarding Apple’s recent push into digital publishing. The company’s new subscription model could potentially make it the “online gatekeeper” as the digital newsstand for newspaper and magazine content (similar to its current dominance in digital music), but the model has met with some resistance from the industry and mixed reviews from analysts.

On the upside, Apple’s model offers publishers instant exposure to the many Apps Store subscribers and makes subscribing a simple, proven process. Recognizing this, some publishers are already on board. The iPad-only digital newspaper The Daily from News Corp., for example, launched around the same time Apple announced its digital publishing plan — while some newspapers, including the Mercury News and the New York Times, are currently test-running the subscription model.

The proposal is a bold move by Apple, which takes a 30 percent cut for each newspaper or magazine subscriber via iTunes. And what may draw the most controversy, the model also restricts publishers from offering lower prices than what they charge through iPhone and iPad apps.

The article raises some possible negative implications, including:

1. There are concerns from European antitrust authorities, which could eventually place a target on Apple.

2. By “playing hardball” with publishers, Apple may run the risk of driving its customers to other tablet-makers.

3. Publishers may fear that Apple is putting itself between them and their new customers.

Apple Negotiating Unlimited Music Downloads

Apple is in talks with record companies to provide iTunes users with more flexible access to purchased music on multiple devices. Apple and the record labels are eager to strike a deal that will maintain demand for digital downloading in the midst of popular streaming services such as Pandora.

According to anonymous sources reportedly sitting in on the discussions, a deal would provide iTunes users with a permanent back-up of purchases and allow downloads to iPad, iPod, and iPhone devices from the same iTunes account (moving a step closer to access to Internet-stored content).

In addition to addressing stalled digital download sales, Apple is also weighing options for its MobileMe service for storing images, video, and other media online. Apple’s new $1 billion data center in North Carolina is expected to serve as a hub for iTunes and MobileMe services.