Posts Tagged ‘itunes’

Charging for online content – who’s willing to pay for what?

Wednesday, February 17th, 2010

A new study conducted by Nielsen has revealed that consumers will definitely “maybe” pay for online news and entertainment content that they now receive for free. However, the majority of respondents (85 percent) indicated that they’d rather the currently free content stay that way. Interestingly, survey respondents were far more willing to pay for certain services, while others don’t seem to be worthy of breaking out the credit card for, especially if they’ve previously done so. The study is in depth, as Nielsen surveyed over 27,000 consumers across 52 countries.

The big winners in the “will maybe pay for” category include theatrical movies, music, games, and professionally produced video (i.e. television). The current print industry buzz around microtransactions in online magazines and newspapers fell into the middle of the pack, an improvement over a Forrester Research report in November found that 80 percent of U.S. consumers would not bother to access online newspaper or magazine sites if they were no longer free. Rounding out the pack were amateur productions including podcasts, consumer generated video and blogs. Interestingly, social communities (i.e. social networks) scored just above podcasts and below Radio. A dichotomy unresolved, as the gaming activity on these social communities is clearly generating large amounts of revenue, that some are obviously interested in paying for.

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Some statistics from Nielsen’s survey:

  • More than half of those surveyed (52%) preferred a microtransaction payment model over a full subscription to acquire content. However, only 43% indicated that implementing an easy payment method would make them more likely to pay for online content.
  • Better than three out of every four survey participants (78%) believe if they already subscribe to a newspaper, magazine, radio or television service they should be able to use its online content for free.
  • At the same time, 71% of global consumers say online content of any kind will have to be considerably better than what is currently free before they will pay for it.
  • Nearly eight out of every ten (79%) would no longer use a web site that charges them, presuming they can find the same information at no cost.
  • As a group, they are ambivalent about whether the quality of online content would suffer if companies could not charge for it—34% think so while 30% do not; and the remaining 36% have no firm opinion.
  • But they are far more united (62%) in their conviction that once they purchase content, it should be theirs to copy or share with whomever they want.

What’s also interesting to note from this survey is the top slots. Movies, Music, Television, and Games. Is there perhaps a program a great number of us already have installed on our machines that gives us direct access to all 4? If you own and iPhone or iPod, or simply like music, television, and movies at your fingertips, chances are you’ve got iTunes installed on your machine. While I’m not going to say that Apple itself has revolutionized the industry, but they have certainly built a platform that has introduced millions to the concept and procedure of purchasing content online with a direct digital deliver method. Now….if print media publishers could reconcile a content gateway through iTunes…well, that might drastically effect the results of the Nielsen survey.

 

8 out of 10 ‘2009 Best App Ever’ contenders are games

Tuesday, January 5th, 2010

Sponsored by 148Apps, the second annual ‘Best App Ever Awards’ nominees have recently been published at bestappever.com and voting is now open. The annual competition seeks to find the best apps in the iTunes App store. The goal of the project is to spotlight the very best apps based on consumer views, not just the highest sellers of 2009.  And according to consumers, 8 out of the top 10 ‘best apps’ this year are in fact, games.

bestappeverLasting just under a month, the public nomination process saw 26,899 opinions, and listed 3,639 different apps. BestAppEver breaks apps down into 56 unique award categories. Along with public opinions, 148Apps also brought in a team of industry people and iPhone application developers to help narrow down the nomination process.

Again, while BestAppEver breaks nominations out into 56 distinct categories, there’s one category that is very unique: (quite literally) Best App. The nominees for this category represent the top 10 vote getters in the initial round of voting.  App developer Firemint had two entries make the list, Real Racing and Flight Control, priced at $4.99 and $0.99 respectively. But perhaps the most notable of all nominees is ngmoco’s free, free-to-play FPS shooter: Eliminate.

You’ll remember that ngmoco was one of the very first iPhone app developers to take advantage of Apple removing the microtransactions restriction, even choosing to break the news via a tweet. A little over a half a month later, they made good on their promise and delivered a free-to-play handheld shooter with quite good graphics and a microtransaction system in place. Now, not that I’m trying to rig the voting – but doesn’t a free-to-play app certainly deserve a vote? Especially when it’s the only free app in the list?

Voting is now open at bestappever.com and closes on January 31st. Winners will be announced on February 10th at the 2010 Macworld Expo in San Francisco.

 

Christmas Day: huge surge in iPhone and iPod Touch app downloads

Monday, December 28th, 2009

In case there was any concern whether or not Apple’s iPhone and iPod Touch were to be a seller this holiday season, new data from app analytics firm Flurry shows Apple still clearly dominating the app download market.

The data released shows that the App store saw a 51 percent increase in activity between the 26th of November and the 26th of December. In comparison, the Android Market showed only a 22 percent growth rate over the same time period. According to Flurry, the App Store delivers a whopping thirteen times as many downloads as their nearest competitor, Google’s Android Market.

iPhone App Store vs

In terms of usage, Christmas Day saw an increase 10x of Apple app downloads when compared to the previous Fridays in December. Interestingly, it wasn’t just the iPhone that was driving activity. The big winner this holiday season might just be the iPod Touch. According to Flurry, Christmas Day saw a 10x increase in iPod touch activity, including present and past generation models. Flurry attributes the jump in activity to iTunes gift cards ranking high on shoppers’ lists. However, this spike in iPod Touch activity indicates the first time ever that the Touch has overtaken the iPhone in downloads. And not only did the iPod Touch beat the iPhone, it blew it away, with the iPod Touch seeing 3x the activity that the iPhone saw.

While this increase in iPod Touch activity overshadows iPhone app downloads, it’s most probably a fluke, as excited new iPod Touch users were eager to being playing with their shiny new toys. However, this activity does fall nicely in line with Apple’s commitment to taking a foothold in the hand held gaming market. Apple did sell a lot of ‘handheld gaming devices’ this Christmas season, and the question remains: can they capitalize on it (in time) in 2010?

 

Can the iPhone OS 3.0 do for games what iTunes did for music?

Monday, May 11th, 2009

Late last week MacLife ran an article that brought to light a whole lotta interesting insights and future plans from some of the top developers for iPhone apps, specifically regarding the upcoming OS 3.0 release. While a lot of these developers discussed a number of their plans relating to the new features peer-to-peer, wifi and Bluetooth multiplayer gaming, push notifications, etc., there were a number of standout quotes regarding the ability to utilize microtransactions, or rather, I should say, in-app purchases.

Bruce Morrison, senior producer at freeverse (Days of Thunder!) wasn’t able to reveal much information about the company’s upcoming products, but they’re clearly up to some big things.

“I can’t talk about our upcoming titles in full yet, but we are very excited about the iPod access, micro transactions, push notifications and a huge slew of other things,” he said. “That, in combination with the new Facebook APIs (which, while not part of 3.0, feel like they almost are), are giving us some very exciting possibilities.”

Likewise, Brandon Barber, VP of Marketing with runaway success story Zynga says, “Obviously, we’re also excited about the micropayment platform. For games like Live Poker, the ability to make smaller purchases of chips and gifts will allow us to normalize pricing, and give gamers more options to play and customize their experience.”

Bolt Creative (Pocket God) president Dave Caselnuovo has this to say about the OS 3.0 update, “In-app purchases and push notification are definitely the most interesting of the new 3.0 features, but I think that the design of our app would have to change somewhat to take advantage of them. When we first started, we released a limited feature set, so our job was to justify the $0.99 price of our app. If we took the time to start big, then I would be more comfortable selling upgrades.”

Looking down the road to users’ reactions and how best to approach in-app sales, Simon Edis, head coder and president at ezone (Crazy Snowboard) comments, “In-app purchases and push notification are definitely the most interesting of the new 3.0 features, but I think that the design of our app would have to change somewhat to take advantage of them. When we first started, we released a limited feature set, so our job was to justify the $0.99 price of our app. If we took the time to start big, then I would be more comfortable selling upgrades.”

So it sounds to me that developers are a bit more than excited about being able to offer users additional content, gear, levels, etc., and naturally, being financially rewarded for these additional developments. And why not? Now, with that said, this flood of information and sneak peaks at what a lot of developers have brewing under the hood got me to thinking about microtransactions in general.

Last week I had to pleasure of having someone else sum up the microtransaction concept better than I could, one Mr. Beau Turkey. In this article he makes a strong, valid, and very logical case comparing music listeners that purchase CD’s vs. those that pick and choose titles via iTunes. At it’s core, iTunes is one of the biggest example of how microtransactions work, what they’ve done for an entire industry, and what potential they hold.

So the question begs to be asked; can the iPhone OS 3.0 update do for gaming what iTunes has done for the music industry? And in saying that, what I’m getting at here is introducing the concept in a plain and easy to understand format that doesn’t chafe the end user. For years and years the vocal core gamers have been screaming about microtransactions, the nickel-and-dime me to death, and pay-to-pwn concept, but something tells me all the while they were very happy not to have to buy the entire CD, and just picked and chose the songs they wanted to load up on their iPod, or generic mp3 player for that matter.

Does this mean that the entire world is purchasing their music via iTunes or Amazon? Of course not, there are still the CD buyers, and naturally the pirates. However, while iTunes hasn’t necessarily saved the music industry, they have made leaps and bounds in getting people off the Napsters of the world, and actually owning up and paying for the music they enjoy. When purchasing music via iTunes, the end user knows exactly what they’re getting, an officially licensed, full (and consistent) quality audio file with all the tags and cover art included. Not to mention in an easily searchable, organized collection that is easily transferred to a portable device. The point here is that through creating an easy to access, navigate, safe and secure point of purchase, iTunes has revolutionized the way we look at purchasing music.

By introducing microtransactions, or in-app purchases as the current buzzword dictates, is Apple setting the casual, and core to a point, gaming community up for the same revolution? Granted, not all developers are going to come in with the same standards of pricing, (perceived) usefulness, and bang for the buck, but they all still have to pass Apple’s stringent standards of quality and functionality. If in-app purchases deliver on their promises; providing new, exciting content with a bona fide entertainment value to the end the user, and the new OS provides a frictionless platform to do it, how long will it take before the gaming community at large starts to truly rethink these ‘microtransactions are bad…mmmmkay?’ preconceptions?

 

Nokia does iTunes one better; could it be the future of gaming?

Monday, October 6th, 2008

A quick search of a few various Torrent trackers turns up a surprising number of pirated, readily available video games.  I shouldn’t really be surprised I guess, as piracy in gaming has been running rampant since computer owners were able to insert disc+cntl c+ctrl v+wait a few hours and insert new 5.25 floppy when the first disk is full.

Bruce Everiss from bruceongames.com recently posted an excellent article concerning what the Nokia 5310 phone/mp3 player is doing for the music industry and what it might mean for games.

One answer that the gaming industry has come up with to fight digital piracy is the (dreaded) DRM or Digital Rights Management.  The recent EA/Spore DRM fiasco has brought to light the incredible downside of DRM – pi$$ing off customers.  While the DRM covers the ‘sales’ side of games, there’s obviously a growing number of alternative revenue models in place including microtransactions, in-game advertising, and subscriptions.

Unfortunately (or fortunately, depending on how you look at it), DRM doesn’t really apply very well to the music industry, as regulating a DRM across the entire scope of the internet is relatively impossible.  Combine that with an mp3’s relatively small file size and ability to be shared across a variety of media, and any possible revenue generation is, quite literally, lost in the wind.

Bruce and I seem to agree that Apple’s solution to the problem could and should be seen as the flagship of the microtransaction industry: iTunes.  What Apple did with the introduction of iTunes is take it’s wildly successful mp3 player, the iPod, and provided users with an ultra-slick interface providing them with features and availability that they could get elsewhere for free: but didn’t.  Tack on the added usability and convenience of a mobile iTunes store, and you’ve got a winning combination.

Taking this winning philosophy a step further, Nokia has implemented the “Give it to ‘em for free for a while, get ‘em used to it, and THEN charge ‘em for it later down the road,” model.  They’ve created a music store with over 2M tracks that users can use for free.  Yes, you heard that right, users can download as much as they want, whenever they want.  For free.  The cost of said service is cleverly built into the perchase price of the Nokia 5310 XpressMusic phone (the world’s best selling mp3 phone).  Once your one year quasi pre-paid subscription runs out, then, and only then, must you fork over a fee.  And will users pay for the service?  Of course they will.  They’ve grown accustomed to it, and will want to continue their enjoyment with said service.  Please note, I’ve specifically NOT said music, but service.  This is the crux of the entire model; users are not paying for a product, but rather a service.

Know any other industries that specialize in digital content delivery with a growing interest in a microtransaction business model?  It’s quite easy to see how this formula could very easily be applied to the gaming industry.  As more and more publishers and operators shift towards a pure digital delivery method and ‘boxed game’ sales move more and more into the history books, perhaps a monthly/yearly subscription to one (or more than one even) games provider(s), that would allow users to download and play their game of choice.

Bruce points out that EA Chief John Riccitello has suggested this theory in the past.  Perhaps Battlefield Heroes is more than just a testing of the microtransaction waters, but also an experiement in free-to-play and just how and where EA can drive this vehicle.   Perhaps the Spore debacle could even be a driving force in EA’s further investigation into the model?

We already know that David Perry’s a big fan of free-to-play fighting piracy, Alex St John says only microtransaction based games have a future, and Riccitello has been floating the idea around; perhaps it takes a mobile phone service to actually throw a bit of ‘proof positive’ on the fire.

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Apple announces Gaming selections for iPhone

Tuesday, June 10th, 2008

Steve Jobs and company are having themselves one heck of a party in San Francisco right now. Amongst Jobs’ exciting announcements in his keynote speech yesterday was the unveiling of what we’ve all been waiting for: Hot games on a hot phone!

Developers are free to set their own prices for games, and keep 70% of all revenues generated. You’ll be able to purchase games from the iPhone itself, provided that the file size is less than 10MB (please keep this in mind publishers). If the game file is over the 10MB limit, you’ll have to grab it via wi-fi or iTunes on a PC. This policy falls in line with all other iPhone downloads/installs.

A number of publishers were on stage with Jobs in a horse and pony show, obviously trying to 1-up the other. Without further adieu, fatfoogoo proudly presents:

The holy worldwide developers conference Steve Jobs keynote speech guide to the gaming grail. (Pics courtesy of Engadget’s outstanding coverage of the event).

Sega brought out and old favorite for iPhone: Super Monkey Ball. While initially previewed at the SDK launch, the perennial favorite with those incredibly maddening tilt levels that you had to clear through to get to the mini games. Right. Now just imagine that on the iPhone. The iPhone version of Super Monkey Ball will have more than 100 Levels. Oye vey!

Loopt is a location aware social networking tool. For those that can’t get enough of their 15 minutes of fame, Loopt allows you to broadcast, and likewise see, pinpoint locations of where you and your Loopt friends are on a map. User profiles can show a daily track of where you’ve been. Along with the Big Brother technology, Loopt also makes it very easy to mobile blog, send a photo, text, or make a call to friends, all within the app.

Pangea Games came to town ready to rock. They brought the noise with 2 titles ready to go for iPhone. First up? Enigmo. Enigmo is a pure physics based game (no mom, I’m working on improving my grades) and takes advantage of the use of iPhones touch controls as well as iPhones smokin’ processor power. The concept is simple enough with water droplets bouncing around and successfully porting them to another location.

The second title is Cro-Mag Rally, a caveman racer. Cro-Mag also uses the tilt controls, has nine tracks and ten cars. Racers are certainly not new to handheld gamers, ‘phones’ even, but….have you ever seen graphics like this on your phone?

Digital Legends brought it’s best via a rather complex looking 3D fantasy battle game. Think of it as a mishmash between God of War and Tomb Raider. Word on the street is that it only took them 2 weeks to program it. If the Digital Legends name rings a bell….yes, it’s the same folks that are pushing ONE for N-Gage.

And finally…while technically not a true ‘game’, I personally think this might be the most entertaining t-bone steak on the table: Band. While technically not a full blown version of Apple’s GarageBand, an independent developer, MooCowMusic from the UK has developer an app fro iPhone that has a virtual Piano, Drums, a 12-bar blues (ummm) “Instrument”, and a bass. Band allows you to arrange and rearrange original tunes and record them. I’m waiting for the next Guitar Hero vs. Band live battle contest.

All titles are scheduled to be available for the Apple App Store’s launch in July for $9.99.

All in all a tasty roundup. I’m not sure how many of these titles will actually make it to my iPhone, but I’m certain there’ll be that annoying long wait for the next train where impulse shopping will get the best of me.