Verizon Is About To Kick Google In The Apps With Its Own Apple-Like App Store

Mg Siegler

MG Siegler is a general partner at Google Ventures and a columnist for TechCrunch, where he has been writing since 2009. Previously, MG was a general partner at CrunchFund. And before TechCrunch, MG covered various technology beats for VentureBeat. Originally from Ohio, MG attended the University of Michigan in Ann Arbor, MI. He’s previously lived in Los Angeles where he worked... → Learn More

Monday, September 13th, 2010

Buried a few paragraphs into my post a few days ago about how Android’s openness is giving the carriers a way to potentially ruin the platform, I noted the following tidbit of information I had heard:

Earlier this year, Verizon rolled out its own V Cast app store on some BlackBerry devices. This occurred despite the fact that BlackBerry devices have their own app store (App World). From what we’re hearing, Verizon is also planning to launch this store on their Android phones as well in the future. Obviously, this store would be pre-installed, and it would likely be more prominently displayed than Android’s own Market for apps.

A new report today from the blog Android and Me seems to confirm this information. Specifically, the report states that Verizon is already accepting submissions for their new V CAST App Store on Android — and that the store will exist outside of Android’s own Market. The best part? It will be a curated store (read: walled garden), much like Apple’s App Store rather than Android’s Market.

The upside is that this store will apparently be free (for developers to submit to, but there will be paid apps) and that it will be looped directly into carrier billing, meaning customers will be able to easily purchase apps. The standard 70/30 revenue share applies as well. And Verizon has a stated goal of accepting apps within 14 days (similar to Apple’s goals for app approvals).

The downside: initially, this store will apparently only be available on Android devices running Android 2.2 or later — and obviously only the ones on Verizon’s network. In other words, Verizon is building a better app store for Android to supplant the one Google made — but one that can only be used on some Android devices.

To underscore the point that Verizon is playing it as a better version of the Android Market, here’s two key bits from their release on the matter:

  • As you know, merchandising your Android app through other channels can be a challenge
  • Hands-on, Experienced Content Programming Team – Get the visibility you deserve, not just a quality-crushing algorithm!

Yep, that’s two direct shots at the market Google built for Android. Verizon is basically building Apple’s App Store for Android. Interesting.

On one hand, this, on top of Verizon’s recent use of Bing as the default search engine on their Android phones, indeed shows how open Android is. On the other hand, the fragmentation picture is getting very ugly, very fast. Expect plenty of customer confusion to follow — “what do you mean I can’t use the apps I bought on my Droid X on my new Android phone?”

Further, at the end of the day, it is still Google’s goal to make money with Android. If both their search and now their apps are being supplanted, what’s the point?

[image via Fanster]

Company: Verizon
Website: verizon.com
IPO: NASDAQ:VZ

Verizon Communications Inc. delivers broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America’s largest wireless network that serves nearly 102 million customers nationwide. Verizon’s Wireline operations include Verizon Business and Verizon Telecom, which brings customers converged communications, information and entertainment services over Verizon’s fiber-optic network.

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Product: Android
Website: code.google.com
Company Google

Android is a software platform for mobile devices based on the Linux operating system and developed by Google and the Open Handset Alliance. It allows developers to write managed code in Java that utilizes Google-developed software libraries, but does not support programs developed in native code. The unveiling of the Android platform on 5 November 2007 was announced with the founding of the Open Handset Alliance, a consortium of 34 hardware, software and telecom companies devoted to advancing open standards...

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Company: Apple
Website: apple.com
Launch Date: April 1, 1976
IPO: NASDAQ:AAPL

Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007. Among the key offerings from Apple’s product line are: Pro line laptops (MacBook Pro) and desktops (Mac Pro), consumer line laptops (MacBook Air) and desktops (iMac), servers (Xserve), Apple TV, the Mac OS X and Mac OS X Server operating systems, the iPod, the...

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