The perfect case study in how not to launch a new product…
Launching a new product can be a defining moment for any brand. Done right, it can elevate your standing in the industry, build trust with consumers, and ensure long-term success. Done wrong, it can alienate your existing audience and harm your brand’s reputation. Unfortunately, the recent launch of Panels, a wallpaper app from popular tech YouTuber Marques Brownlee (MKBHD), offers a masterclass in what not to do when launching a product.
After all, Brownlee’s reputation as the number 1 tech reviewer on Youtube (19.5m subscribers) meant he had an insider’s perspective on what makes or breaks a tech product. But as fans rushed to download the wallpapers on offer, many were left dismayed and subsequently flooded the comments on his latest video, the top comment stating: “No one’s paying 50$ a year for a regular wallpaper app lil bro”
If you’re not familiar with Panels, it’s a new premium wallpaper app (yes, those do exist) designed to give users exclusive, high-quality wallpapers created exclusively by digital artists/photographers (well kinda…more on that later). However, the product rollout has been plagued by a series of missteps that have left fans disappointed, and the comment section of several of his most recent videos ridiculing his once flawless reputation. Let’s take a closer look at where things went wrong, and what lessons can be learned from the launch of “Panels”:
1. Pricing and Value Proposition: A Hard Sell?
Perhaps the biggest issue at the center of the ‘drama’ was the app’s pricing model. Panels operates on a subscription basis, with a $50 (nearly R900) annual fee for access to high-resolution (4K) wallpapers. Compared to competing wallpaper apps, such as Zedge and Backdrops, which offer either lower subscription rates or one-time payments, this felt wildly overpriced.
But not to fear, there is a free tier of the app that lets you download the same wallpapers (in reduced quality of course)- you just needed to watch two 30s ads first (Edit: now reduced to just one ad). This left users feeling short-changed for what is widely accepted as completely free on services such as Google Images & Unsplash.
2. Security & Permissions: Asking Too Much?
Another issue that users flagged was the app’s approach to privacy and security. On iOS devices, Panels requested permission to track users across other apps and websites, as well as your location—something that raised red flags. For a wallpaper app, this kind of permission seemed entirely unnecessary and invasive, leading to concerns about data privacy.
While privacy has become a hot topic in the app world, especially with growing concerns around data collection, Panels appeared to overstep the line in a way that wasn’t justified by its purpose. On Android, there was slightly less concern around permissions, but the inconsistency between platforms only further muddled the experience.
3. Profit Sharing: A Misguided 50/50 Split?
In one of his announcements, MKBHD stated that profits from the app would be split 50/50 between the app and the artists contributing their wallpaper designs. While on the surface, this might seem like a fair deal for the creators, many proceeded to promptly point out that several of the artist’s wallpapers are AI generated.
Given that most users were already balking at the $50 yearly fee, the question arose: were users really getting enough value for their money? With cheaper and more accessible alternatives available, the profit-sharing arrangement did little to ease the concerns around cost. Not to mention Epic’s recent landmark lawsuit against Apple’s 30% profit split on transactions made on their App Store- the optics of a 50/50 split did not land as favourably as you might expect.
4. Design Standards: A Miss for a Tech Pro?
One of the most surprising complaints about Panels was the app’s overall design. As a tech expert known for his high standards, many expected the app to have a sleek, intuitive interface. Instead, users reported a clunky, basic design that didn’t live up to the expectations set by MKBHD’s polished tech reviews
Popular Youtuber “Juxtopposed”, whose channel regularly critiques several app’s design and UX, cited many issues in her video on Panels. These include a rushed website, poor onboarding process, inconsistent icon use and many other odd design choices that render the app confusing to use.
A good user interface is essential for any app, but especially so when it’s tied to design and aesthetics. What was intended to be minimalistic came across as underdeveloped, especially for a paid app with a steep subscription fee.
What Could Have Been Done Differently?
Launching a new product is never going to be straightforward, but Panels could have avoided headaches with a few strategic adjustments. Here are the lessons to be learned from Panels’ launch:
- Rethink the Pricing Structure: Offering a $50 subscription for wallpapers was ambitious but ultimately off-putting to users. A more competitive price, perhaps along the lines of $5 or $10 annually, could have attracted more users. Alternatively, offering a one-time purchase option would have helped those hesitant about committing to a subscription.
- Improve the Free Tier: The decision to make users watch ads to download standard-definition wallpapers felt punitive. A better approach might have been to allow a set number of free downloads per month, without ads, to encourage engagement with the app and nudge users toward the premium offering.
- Fix the Security Issues: Requesting broad tracking permissions for a wallpaper app made no sense to users. A privacy-conscious launch, with minimal permissions, would have aligned with growing consumer concerns around data collection.
- Offer a Clearer Value Proposition for Artists: While the 50/50 profit-sharing model was well-intentioned, it wasn’t effectively communicated. If the app had offered more transparent details about how the fees supported creators, users might have felt better about the higher cost.
- Polish the Design: For an app centered on aesthetics, the design of the app itself should have reflected a higher standard. A more intuitive interface, smoother navigation, and a more premium look and feel would have gone a long way in justifying the subscription fee.
- Plan the Launch: Launching a Wallpaper app may be intriguing to his core fanbase, but to the average phone owner it is a laughable idea. This is how target audiences work and it is not a new idea. The launch should have focused on communicating directly to these enthusiasts fans, who would not necessarily mind supporting MKBHD and paying the subscription fee, or at the very least, when deciding not to, not going on to ridicule the launch.
Final Thoughts
The launch of Panels is a fantastic case study in how even a highly-anticipated product can stumble if key aspects like pricing, design, and user experience aren’t aligned with customer expectations. Further, it is proof that no matter how excellent your track record is, proper planning is always necessary to be successful.
By addressing these issues early on, Marques Brownlee and his team could have positioned Panels as a must-have app for his core fans in a crowded market. Instead, they’ve found themselves facing backlash from the entire internet for an app that was never going to be understood by everyone.
Launching a product, especially in today’s ultra-competitive digital landscape, requires not just a great idea, but careful planning and execution. It’s a reminder that a loyal fanbase and industry expertise don’t guarantee success—you’ve got to deliver on value, clarity, and a flawless user experience from the get-go.
Edit: MKBHD has responded to a lot of the criticisms surrounding the app, detailing the plan for the future of Panels in this video.