The app store economy: an innovative price model for publishers?

News behind a pay wall?

News behind a pay wall?

Newspaper publishers suffer for years now. The number of readers is going down – and as a result advertisers are less interested to put an advert in a newspaper. With the rise of the app store economy, publishers have the chance to come closer to a price model that works.

Strategy 1: news behind a pay wall?

In order to generate revenue there are plenty of newspapers who have turned news into paid content. The UK Times experiment with the paywall demonstrates that people say “No, thanks” and click away to another site when faced with a paywall at a news site. Source: The Times UK Lost 4 Million Readers To Its Paywall Experiment

Strategy 2: look at other industries (gaming industry) – The app store economy

The app store economy - innnovative pricing through inn-app purchase

The app store economy - innnovative pricing through inn-app purchase

Since there are loads of buzz within the publishing industry about publishing for the iPad, why not have a look at the opportunities of the app store economy? In the beginning of the Apple App Store, you had free apps and paid apps. After a while, they added a functionality called “in-app purchases”. In-app purchases mean that you can offer the apps for free and charge upgrades in the app – like e.g. in the gaming industry new levels.

Price model innovation newspapers: app store and in-app purchase

Consider this: a newspaper publisher creates an iPad edition. Would it make sense to offer the app for free, allowing everyone to read the entire newspaper on iPad? Would it make sense to limit the free articles to 3 and then offer “in-app purchase options” if one wants to read more? Would it make sense to show a summary of all articles and offer “in-app purchase options” to get the entire article?

We’d love to see publishers experiment with it and see whether the strategy from one industry can be applied to another one.

Facebook's history of innovations. What's next?

Facebook - online social network

Facebook - online social network

Facebook is pushing its latest product innovations hard these days. Only within the last three months we have seen the launch of Facebook places, Facebook Groups and Facebook Messaging.

The history of the enterprise seems a history of innovations. What is the next innovation and where will this end?

Facebook: a history of innovations

  • Facebook as a platform is innovative by nature: it redefined our social experiences. Hence, this technology had a tremendous impact on how people construct their identity. From time to time we tend to note a “I publish, so I am-trend”, meaning that if it didn’t happen on Facebook (or there are no traces on Facebook) it didn’t happen.
  • Secondly, with their “connect to facebook” technology, the social sharing experience was opened up to third-party apps.
  • The third innovation that we wish to bring forward is the implementation of the like button across the web. This might seem an easy trick but has loads of consequences. And it’s extremely nice for a savvy marketer! Why? Guess this is food for another blog post…
  • Finally, the innovative new messaging system which is rumored for bringing together text messaging, instant messaging and e-mail messaging. It seems as the Facebook Messaging Innovation took a classic “melt-to-innovate” approach.

Will the next innovation be mobile?

The question for us is: what will be next? What could be Facebook’s next big innovation? Let’s have some ideas flow on that …

Facebook Places @ Olympia London

Facebook Places @ Olympia London

  • Would a photo book app on top of Facebook be innovative? And what if you could collaborate with your friends on the creation of that photo book?
  • Would an e-newspaper based on posted articles by friends be innovative? In this manner you can leaf through a digital newspaper that contains all news shared by your network.
  • What are the chances they further develop an “office suite” on top of it? Would that be innovative? Would that impact the way employees work? Would it mean the definitive break-through of enterprise 2.0? After all Facebook obtained Docs from Fuse Labs that will allow to co-create and share text documents, spreadsheets and PDF directly within Facebook with all friends, family and (especially) colleagues.
  • Is the next big thing in the mobile sphere with Facebook Places? Shall we get suggestions to drink a beer with a friend in the bar behind the corner? Will it embrace AR technology?
  • Or will Facebook evolve into the basis for artificial intelligence, as one of the main (Russian) investors believes?

Framing innovation

Innovation is about adaptation! We don’t want to bother you with theoretical facts about the adaption of technological innovations, but please realize that in the end, it are always the people who decide whether an innovation becomes a mainstream success or not. For those interested in the theory on innovation & adaptation: it follows the statistical distribution known as Gauss.

Gauss graph - diffusion of innovation

Gauss graph - diffusion of innovation

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