I've been thinking about this question for the past six months as we
have been eagerly awaiting the launch of the iPhone app store and with
it, the iPhone app ecosystem. IPhone apps have been out there since the emergence of jailbreak but
its clear the the launch of the app store legitamizes this market.
We've made one investment in the Facebook app ecosystem, Zynga, which is the largest network of gaming apps on Facebook and the other large US-focused social nets. And we've made one investment in the iPhone app ecosystem with Pinch Media which provides free analytics and an advertising system to monetize free iPhone apps.
So as we've watched Pinch launch its services to the iPhone developer market, I've been wondering what will be similar between these two ecosystems and what will be different?
At first blush, it seems that the iPhone has attracted a broader base of developers and at least to my eye, a number of more 'serious' (ie productivity/business apps). But it's also going to be true that gaming is likely to be the most popular category in both ecosystems. Just look at the app store right now and you'll see games all over the most popular lists.
On Facebook, Zynga and a few others developers have come to dominate the games category. Will it play out that way on the iPhone too? Hard to say but its clear that we'll all be playing Super Monkey Ball on our iPhones the way we play Brickbreaker on our Blackberries.
The biggest question on my mind is how big will the first mover advantage be in the iPhone app ecosystem? On Facebook, the few who got their first, like Slide, RockYou, Zynga, iLike, Flixster, have come to dominate the ecosystem.
That has a lot to do with the rules of the game that existed when Facebook launched the app platform and how they've tightened them down since. And Facebook is a viral social system. Is the iPhone? My gut says yes, but I am not sure its virality is as baked in right now as it will be over time.
If first mover means as much on the iPhone as it did on Facebook, then the early stars like Loopt/Yelp, Super Monkey, Twitterific, and others will have an advantage.
The design of the app store front page is also important. Will Apple favor paid apps where they get a cut over free aps where they don't? Right now, the front page looks pretty balanced between most popular, staff picks, recently popular, free/paid, etc. But it's certainly been true in the music store and the podcast page that being popular is self reinforcing and I suspect that will be true with iPhone apps as well.
I am sure some of the answers to these questions I've been asking are already known. And I am sure that all of you have been thinking of and asking the same questions. So comment away and educate all of us on this important question.
Read more of Fred Wilson on his blog.
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Steven Loeb
Startup/Business
Joined Vator on
iLike is the Web's leading social music discovery service and the dominant music application on Facebook Platform®, Bebo, and Hi5. With over 20 million registered users, iLike helps consumers discover and share playlists, new music, and concerts that match their tastes. The iLike Sidebar for iTunes recommends new music, creates automatic playlists, and connects people through music. iLike's Artist Service Platform is a suite of services to help artists build viral fan communities. By leveraging iLike's "Artist-Fan Graph," a vast database of connections between consumers and their favorite artists, iLike's Artist Services Platform transforms the way artists cultivate and communicate with their fanbases on iLike and Facebook. iLike is privately funded by Ticketmaster (IAC), Khosla Ventures, Bob Pittman, and other private investors. Based in Seattle, WA, the company also operates indie music community GarageBand.com.Startup/Business
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Slide is the largest personal media network in the world, reaching 144 million unique global viewers each month and more than 30 percent of the U.S. Internet audience. We help people express themselves and tell stories through personalized photos and videos created on Slide.com and viewed anywhere on the web or desktop.
Slide's products — including Slideshows, FunWall and SuperPoke! — are popular on top social networking and blog platforms, including MySpace, Facebook, Bebo, Hi5, Friendster, Tagged and Blogger. Slide is also the leading developer on Facebook with more than 84 million applications installed and the most active users than any other developer.
Launched in 2005 and founded by PayPal co-founder Max Levchin, Slide is backed by Mayfield Fund, Blue Run Ventures, Khosla Ventures and Founders Fund.
Startup/Business
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RockYou is a leading provider of applications and widgets on the web. RockYou widgets include photo slideshows, glitter text, customized Facebook applications and voicemail accessories that are simple to use and enable people to frequently refresh their online style. Founded in 2006, RockYou has over 35 million users, serving over 180 million widget views per day in more than 200 countries. RockYou applications are customized for easy integration across all social networks including Facebook, MySpace, Bebo, Friendster, Tagged and hi5.