Podcast Summary
Discussing the current state of tech companies and their hype levels with new colleagues: The VergeCast team welcomed new colleagues Walter Mossberg and Lauren Goode, discussed the hype levels of various tech companies, and shared insights from their first few days working together. They also mentioned Lynda.com as a valuable resource for unlimited access to on-demand video courses on various topics.
The VergeCast, hosted by The Verge, is a weekly podcast discussing various topics related to technology, entertainment, and culture. The show features a unique segment called "hype check," where listeners can ask Sam to rate the current hype level of a particular topic using a number and a descriptive phrase. The recent episode welcomed new colleagues Walter Mossberg and Lauren Goode to the team, following Vox News' acquisition of Recode. The team discussed the current state of tech companies, their hype levels, and shared some behind-the-scenes experiences from their first few days working together. Additionally, they mentioned Lynda.com, an online learning platform with over 3,000 on-demand video courses, which offers unlimited access to training on hundreds of topics for a flat rate.
Google, Apple, Facebook, and Amazon: The 'Gang of Four' in Tech: In 2011, Google, Apple, Facebook, and Amazon were referred to as the 'Gang of Four' due to their unprecedented growth as tech platforms. Today, they continue to dominate various industries and have expanded into each other's territories, leading to five-sided competition.
During a conversation at a tech conference in 2011, Eric Schmidt of Google referred to Apple, Google, Facebook, and Amazon as the "Gang of Four," leaving out Microsoft. Schmidt's reason for excluding Microsoft was that it didn't have a modern platform at the time. However, Microsoft executive Steve Ballmer and Steve Sinofsky countered by showcasing Windows 8, which was met with great hype from fans. At the time, these four companies were experiencing unprecedented growth as powerful tech platforms. Today, their influence has only grown, with Apple, Google, Amazon, and Facebook dominating various industries and becoming increasingly interconnected. For instance, the entire media industry's revenue is less than Apple's profit over three quarters. These companies started with distinct focuses: Google with search and Android, Apple with hardware and software, Facebook with social media, and Amazon with selling things. However, they have all expanded into each other's territories, leading to a five-sided competition.
Apple's Cultural Influence and New Technologies: Apple's influence in tech is evident in areas like music streaming and wearable tech, but not all products receive universal acclaim. Balanced perspective is key when evaluating new technologies, and Windows and PCs remain important for daily use.
We're currently experiencing an "Apple moment" in the tech industry, with Apple leading the way in areas like music streaming and wearable technology. Apple's cultural influence and ability to generate buzz around new products, such as Apple Music and the Apple Watch, are significant. However, it's important to remember that not all of Apple's products have been met with universal acclaim, and there's still uncertainty around the long-term success of some of their offerings. For instance, the Apple Watch has received mixed reviews, with some praising its design and others waiting to see how its ecosystem of apps develops. It's crucial for companies and consumers to approach these new technologies with a balanced perspective, acknowledging both the potential and the challenges. Additionally, the discussion highlighted the continued importance of Windows and PCs, with hundreds of millions of users relying on them for daily browsing and productivity.
Apple's strategic release of the Apple Watch: Apple's deliberate release of the Apple Watch in stages allowed for a smoother user experience and gave developers time to create more robust apps, reflecting Apple's history of waiting to enter new markets and dominating them once they do.
Apple's approach to releasing the first generation of its smartwatch, the Apple Watch, was strategic and deliberate. Initially, developers were limited in their ability to write apps for the watch. This led to a feeling of underdeveloped apps and a sense of confusion among developers and consumers. However, Apple's decision to release the watch in stages may have been a calculated move to allow for a smoother user experience and to give developers time to create more robust apps. Apple's history of waiting to enter new markets and dominating them once they do, as well as their long-term focus, supports this theory. The success of the iPhone and iPad, which both faced initial struggles, demonstrates Apple's ability to turn things around and ultimately dominate the market. It's too early to determine whether the Apple Watch will be a flop or a platform for innovation, but given Apple's track record, it's worth keeping an eye on. Additionally, the discussion touched upon the importance of music in the tech world, with Apple Music and Spotify being major players. The music industry is currently undergoing significant changes, making it an intriguing area to watch.
A discussion on Apple Music and human curation in the streaming era: Apple Music's integration of Beats and human curation offers potential for shared listening experiences, despite some confusion about its presentation, and the debate continues on the relevance of human curation in the streaming music industry.
The conversation between Emily and the speaker has shifted from television to music in the realm of technology and culture. Apple Music, in particular, is a topic of interest due to Apple's integration of Beats and the human curation aspect. The speakers express excitement about the potential for people to listen to the same music simultaneously, no matter the time zone or location. However, there is a question about whether human curation is still relevant in the streaming music era. Despite some confusion about the presentation of Apple Music, the speakers believe that Apple's reputation and the potential for shared listening experiences make it a compelling offering.
Music curation and expert playlists drive success in streaming services: Apple Music's focus on curation led to hiring experts like Rolling Stone and Pitchfork for playlists. Spotify followed suit, and the shift towards subscriptions due to financial struggles in record labels has solidified this strategy.
The curation of playlists and music discovery plays a significant role in the success of music streaming services. Apple Music, with its roots in Beats Music, prioritized curation over celebrity endorsements, leading to the hiring of experts like Rolling Stone to create playlists. Spotify followed suit, and the Pitchfork app became a standout example of this strategy. However, the model of music consumption is shifting towards subscriptions due to the financial struggles of record labels with ad-supported streaming. Apple, facing declining iTunes sales, saw an opportunity to collaborate with labels and offer a subscription-based service to compete with Spotify. The importance of curation and the shift towards subscriptions are key factors in the current state of music streaming services.
Apple vs. Spotify Pricing War: Apple and Spotify are in a pricing war, but consumers view the difference in price as negligible. Winning consumers depends on having the largest catalog and best user experience.
The music streaming industry, specifically Apple and Spotify, have been engaged in a pricing war. Apple wanted to charge more to differentiate themselves and potentially eliminate Spotify, but the question is, would charging less still allow them to achieve their goals? For consumers, the difference between $8 and $10 a month is negligible. Ultimately, the streaming service with the largest catalog and best user experience will likely win over consumers. Apple's catalog doesn't need to be as deep since consumers can purchase individual songs or albums outside of the streaming service. However, the user interface and experience are crucial factors. Apple is known for writing great software, and some argue that Spotify's UI leaves room for improvement. The conversation will continue as both services strive to provide the best value to consumers.
Apple's acquisition approach and disjointed integration: Apple's respect for acquired teams' cultures can lead to unique features but needs to improve cloud services to stay competitive
Apple's approach to integrating new acquisitions, like Beats and Recode, can feel disjointed due to a focus on respecting existing teams and cultures. However, this approach could lead to innovative and unique features that may not be immediately apparent. On the other hand, Apple needs to improve its cloud services, particularly in areas like photo uploading and music matching, to remain competitive with tech giants like Google and Amazon, who have a stronger cloud-based focus. These companies have the advantage of being primarily cloud-based, allowing them to offer more seamless and integrated experiences across their platforms.
Google's Android dominance faces challenge from open-source versions: Google's reliance on Android for revenue and data collection is threatened by the rise of open-source Android versions, which don't include Google services.
Google's dominance in various markets through its Android platform has been successful, but its reliance on Google services to make money is facing a significant threat. The open-source version of Android, which does not come with Google services, is becoming increasingly popular, particularly in emerging markets. Google is trying to counter this trend with initiatives like Android One, but it has faced challenges. Meanwhile, Apple, which emphasizes privacy and local data processing, continues to argue for a different approach. Google's financial success doesn't depend on profits from Android phones but on the data it collects through its services. However, the growing number of Android devices without Google services means a loss of potential revenue and data collection.
Google's struggles with hardware and Apple's dominance: Google excels in software and advertising but faces challenges in hardware, while Apple dominates in hardware but lags in software and advertising. Both companies offer unique benefits to consumers through competition.
Google and Apple have distinct strengths and weaknesses when it comes to hardware and software. While Google excels in software and advertising, they have struggled to make a significant impact in hardware. Companies like Motorola, which Google once owned, have not lived up to their potential when produced under Google's ownership. Apple, on the other hand, dominates in hardware, but faces challenges in the software and advertising realm. The decision to let Samsung lead in Android production has allowed Google to focus on their strengths, but raises questions about the future of Google's Nexus phone program. The Nexus phones serve as reference designs for the Android operating system, but their future remains uncertain. Ultimately, both companies have unique offerings, and consumers benefit from the competition between them.
Competition Threatens Google's Android Dominance: Amazon and other companies challenge Google's control of the Android market with affordable devices and innovative offerings like voice-controlled speakers.
Google may be losing control of the Android market as more affordable options emerge from other handset makers. While Google emphasizes faster updates and the requirement of using their suite of services, these devices put pressure on Google's dominance. Amazon, another tech giant, has been successful in commerce and has ventured into devices with Kindle e-readers and Fire tablets, although not all have been successful. The Echo, Amazon's voice-controlled speaker with Alexa AI, is intriguing but may face competition from Apple and other tech companies. Overall, these companies continue to innovate and disrupt, making the tech landscape an exciting and dynamic space to watch.
Amazon's AI assistant and backend services power the Echo's success: Amazon's Echo's success isn't solely based on its hardware, but on its intelligent assistant and robust backend services.
While devices like the Amazon Echo with their AI assistants are becoming commonplace and adding convenience to everyday life, they are still just the tip of the iceberg for companies like Amazon, which also provide powerful backend services and platforms for other businesses. The success of these devices doesn't necessarily depend on the hardware itself, but on the intelligence and capabilities of the AI assistant and the robustness of the backend services. Companies like Apple and Microsoft, which have strong backend services and intelligent assistants, have the potential to enter the market and make a significant impact. The Echo, if executed properly, could be a game-changer for Amazon, marking a new successful venture beyond their core commerce and cloud services businesses.
Microsoft's Windows 10 push: Reviving phones with PC upgrades: Microsoft aims to lure hundreds of millions of PC users to upgrade to Windows 10, incentivizing developers to create apps for both PCs and phones, hoping to expand their mobile market.
Microsoft's push for Windows 10 is less about enhancing PCs and more about reviving their struggling phone business. Historically, Microsoft has had low interest in getting users to upgrade to new Windows versions, but with the importance of the phone market to Microsoft, they now aim to get hundreds of millions of PC users to upgrade, enticing developers to create Windows 10 apps for both PCs and phones. The idea is that once users upgrade their PCs, they'll have access to a larger market for their apps, making it worth the effort for developers. This strategy is counterintuitive, as it's not the typical approach for Microsoft, and it remains to be seen if it will be successful. The speaker also shared their thoughts on Microsoft's past attempts with the Surface RT and suggested they should have focused on a tablet-specific operating system and apps instead of trying to force desktop apps onto the device.
The Debate Between Mobile Apps and Web Apps: Companies like Facebook are improving web offerings, blurring lines between apps and web apps, and the future of each remains debatable.
The future of mobile apps versus web apps is a topic of ongoing debate in the tech industry. While some believe that mobile developers are racing to create the best apps, others argue that web apps, which can be accessed through a browser, may offer a more effective solution. Companies like Facebook, which primarily operates through a web platform, may even leverage their large install base on PCs to improve their web offerings and potentially outshine mobile apps. The lines between apps and web apps are becoming increasingly blurred, with many web apps running in the background of apps like Slack and Mailplane. The tech industry is constantly evolving, and it will be interesting to see how this debate unfolds. Additionally, the podcast mentioned the upcoming launch of Recode Radio and Recode Decode, a new interview show hosted by Cara Swisher. The Verge can be found on various platforms, including Snapchat, Periscope, YouTube, and iTunes. The team encourages listeners to follow them on these platforms for exclusive content. Lastly, a sponsor shout-out was given to Lynda.com, an online learning platform with over 3,000 on-demand video courses to help users strengthen their business and technology skills. A free 10-day trial is available with the code "firstbest."
