If you were a kid of the 90s like me, you probably had AOL and bragged about it at school, much like Apple App Store users a couple years back who felt privileged to be the only ones allowed into this ultra exclusive application world. In hindsight, we know how ridiculous AOL was in thinking they would be able to hold on to control of the vast internet. It is comparable to the way the Apple App Store has had significant control over the mobile web by only allowing users to experience their favorite website, game, or tool through applications.
How did we get here?
Everyone has heard, and probably used, the Apple App Store for downloading apps to their iPhones and iPads. Right now, it’s the quickest way to find content that is specifically formatted for your device. More importantly, the genius behind the App Store is its use of proprietary mobile technology, from hardware to software to design. By providing the user with the most recent mobile technology and limiting competitor access, the number of apps are now over 500,000!
Rewind back 10 years and you have a very similar development with AOL and its “walled garden” of premium web technology and content. With over 30 million subscribers, AOL was the 300 pound gorilla in the online space. In nearly every TV and radio ad, there was a mention of an AOL “keyword” that provided a premium experience during the initial climb of the Web. Back then, the vast majority of websites were plain text content with no real user experience. It was through AOL that you got to gain a visually stunning alternative.
What is the fate of Apple and all the other app stores out there?
History has shown us that once the Web took off and users realized they were able to get direct access to websites, the AOL empire crumbled. In turn, there is no doubt that proprietary app stores will become less crucial once nearly all websites provide a smartphone-optimized experience. It’s much easier to go directly to a website than it is to download an app, and there are no updates to worry about. There's also no extensive approval process for developers, allowing more talent to jump in and help expand the mobile web.
Unlike AOL, Apple isn’t doomed. However, there are changes that need to be made to survive the next shift in the mobile industry. One of the biggest issues is that so many apps makes it increasingly difficult to find what you’re looking for. That’s why app discovery companies are so hot right now. Appsfire, a France-based startup, is reaping the benefits, scoring $3.6 million in Series A funding. GetJar, another app discovery startup, raised $25 million in February to help people find apps that are relevant and interesting. Apple has tried to address this issue by changing its algorithm for application ranking, but this seems to have only put a dent into the problem.
The larger unaddressed issue is that most people are looking for smartphone-optimized content, not applications. While mobile search on Google is smartphone optimized, the results aren’t. There is no way to differentiate mobile-optimized results from standard websites. Simultaneously, it’s a difficult issue for mobile site developers because there is currently no way to let Google know you are providing a mobile experience for the user. It seems like this is an issue the search engines hope will resolve itself, as more sites start tailoring to the mobile user.
Why should you care as a consumer?
As a consumer all you're usually interested in is getting a great mobile experience without having to pay through the nose. You don’t care who is providing the backend to the content you are looking for, but just want to find what you need and move on with your life.
The reality is that anytime a company has a monopoly over an industry, it’s the consumers who suffer. At one point, AOL used to charge more than competitors because they had control over the content, and users had no other choice but to pay. With more options, the consumer is free to choose what best fits their needs and budget, which leads to the best content and the best apps organically making their way to the top. Consumers should be deciding what is and isn’t worthy of being on their phone, not a tech company who is in it just for profit.
The mobile web is growing and morphing faster than we have seen with the traditional Web of the 90s. Within the next few years we'll start to see the future of mobile taking shape . Like AOL, large companies in the space will learn some harsh lessons. In the meantime, as daily users of all the cutting edge mobile technologies, we'll take all newest innovations we can get!
