Why Apple still has it
Also: Photopea, Deel, and a new Amazon payment method
Welcome to new readers that joined us the last week! I am super happy to have you on board. If you are reading this and aren’t subscribed yet, make sure you hit subscribe below:
Catches of the week 🐟
Podcast wars ⚔
Apple announced some significant changes to its podcasting app last week. Most importantly the ability for creators to launch subscription services and thereby monetize their content right in the app.
Now, Apple being Apple, of course, takes its cut of that revenue (30% in the first year of a subscriber, 15% after that) which matches their platform fee for in-app payments through the AppStore.
The other significant player in the podcasting ecosystem, Spotify, announced yesterday that it will also roll out podcast subscriptions, however, taking a 0% cut for the first two years (and only 5% after that)!
I am not only excited to see how this battle between the two podcast giants will unveil, but also how it will change the podcasting landscape. What will the future of podcasting look like?
Are creators gonna be incentivized to go paid and in return get better visibility in the podcasts app? This is already happening in the AppStore and it makes sense (at least for Apple) to change their discovery and promote paid products.
Further, what formats will creators choose to upsell listeners? There is a variety of options on the table:
Free content with ads and pay to remove ads.
Extra content only for paying subscribers which could include “ask me anything” sessions, deep-dives, special guest, etc.
Another possibility is to make past episodes only available to paying subscribers.
This is a game-changer and I will follow the innovation in the podcasting space closely in the upcoming months!
Photopea
I came across this product in a recent podcast episode and googled Photopea first thing as I did not believe this is actually true. Well, it is. Photopea is a completely free, and browser-based version of Adobe Photoshop.
I am not a Photoshop expert, so I can’t speak to whether it really includes all of the features that the original product does. It does look quite extensive however and definitely covers my use cases.
So head over to Photopea and check it out.
Lolli - Crypto cashback 🍭
I have seen a video of the Lolli founder speaking on CNN and thought this is such a cool idea. You can now get cashback on your online purchases in Bitcoin using the Lolli chrome extension! They are working with hundreds of merchants and claim that you get up to 7% of your purchase value paid back.
Disclaimer: it is only available in the US at the moment
Trade of the week 😎
No trades this week. But I would not be surprised to see Apple perform well given their recent announcement. Three arguments pro-Apple:
First of all, there will be a whole subscription economy built on top of the Apple podcasts app. I have been using this app for many years now at it has definitely felt like a product that Apple did not really care about. As I have written above, I think the monetization of podcasts might be a game-changer and I am curious to see how much value can be created on top of this.
More news around AR glasses. I have come across an article this week, that shines a little more light on Apple’s plans for their own AR glasses that might come to market as early as 2022:
“Apple wins a patent that combines augmented reality (AR) with thermal technology to turn any surface into a virtual touchscreen.”
Any surface into a touchscreen? Sounds kind of familiar if you watched the video I shared in last week’s newsletter on Facebook’s recent developments in AR technology. I think the AR space will heat up in the upcoming 12-18 months and I am certain that if Apple decides to enter this market, they will present a beautiful and better-designed consumer product than most of their competitors.
Apple is just too sneaky. The company announced a new product during their spring event last week, the so-called AirTag, that allows you to easily track your personal items leveraging the global network of all Apple devices to track and find your stuff without sharing your personal data. This is genius as it would not be possible to launch such a product without the network.
I was surprised by how cheap Apple decided to sell these AirTags (starting at $29), but it would not be Apple if there was not a very smart way of monetizing this product.
Cheap AirTag? Awesome, but hey, you cant attach it to anything without buying the proper accessories. So there you go, Apple will make tons of revenue from AirTag accessories just like they did with any other product accessories in the past. You gotta love Apple.
Photo Credit Apple. Screenshot is taken from the Apple homepage By the way - I asked the following question this week and would love to hear your thoughts on how AirTags might affect our lives!
Enjoying the read so far? Let others have a piece of it too! Share this newsletter and help me spread the word 🙌
Also, feel free to show your support for zero to MIO by clicking the button below 🤗
Amazon’s new payment method 🖐
Amazon is testing a new payment method in their Whole Foods stores: pay by scanning your palm (see the image below).
I was inspired by a recent podcast episode to write about this, as I think it is such a smart choice to use the palm instead of any other personal unique identifier. Retina, or face scans, as well as fingerprints, feel very intimate as we all know them in the context of police, high-security buildings, or secret research institutes (we were all taught that through movies in the past). The palm, however, almost feels innocent in comparison and might lead to broader user adaption.
Also, what is Amazon’s goal with this technology? Whole Foods is only the testing environment, that’s for sure. I would not be surprised to see Amazon further push into retail stores in the near future using their payment method as an entry gate.
Deel 🦄
Covid-19 was arguably the biggest accelerator for the acceptance and growth of remote work. More and more companies are building their teams remotely (my own included) which is great but also has its challenges.
I talked about the challenge of creating a proper team culture and efficient communication channels in remote teams before and discussed some of the products aiming to help remote companies build a virtual office.
Deel is tackling another problem of a remote-first world: international hiring & payroll. The company helps entrepreneurs efficiently manage all contracts and processes related to hiring & payroll and offers immediate value by delivering ready-to-use templates.
I wanted to mention the company today, as I believe that this space will become huge in the upcoming years. Deel announced a new round of financing this week at a valuation north of $1 billion, making it an official unicorn!
So watch out for the remote HR tech space 🚀
Overview on marketplace & platform take rates
Lenny Rachitsky is writing an amazing newsletter, mostly covering things around products. Check out his overview on platform and marketplace take rates below.
He also presents a simple equation that can be used to determine a platform or marketplace’s take rate. Take rate = Convenience + Demand - Competition
That’s it for this week. I hope you enjoyed this newsletter and took some inspiration away from it! Feel free to reach out with feedback, ideas, and things you would like me to write more about. Make sure you hit subscribe below, to be among the first to receive this newsletter in the future