The Onteca Challenge (not to be confused with Mosteca Corral)
So, after much deliberation I decided to move away from concentrating initially on the Digital Fiction Factory question as it was proving to be the most popular of the three and I decided to choose question two as my preference for the researching and presentation assignment for the Applied Media Research module.
When Onteca provided their powerpoint presentation, I felt I could relate to everything straight away and I really felt engaged. It all made complete sense and I found it very interesting. Being born in the late 1970s, I myself have visited many an arcade, owned many a computer, played many a console and like most other people nowadays, have naturally progressed onto many a mobile device.
Fittingly, my iphone cover, (which at the time of the Onteca visit was laid out on the desk in front of me) is in the style of an 80's NES gamepad.
I felt my age again because I think I was the only person in the room conscious of it and perhaps much of the room had no experience of the original 'NES'.
Onteca compared the relatively new concept of app-purchasing/digital downloading (call it what you want) to 1970s arcades or coin-ops. An odd comparison, you may ask? Well not really.
The two are comparatively similar in so far as the user pays a small amount of money for a limited amount of gameplay, but there is an addictive element which just keeps bringing you back for more. I understood this straight away. The penny had dropped...(insert 10p to continue)
The two are comparatively similar in so far as the user pays a small amount of money for a limited amount of gameplay, but there is an addictive element which just keeps bringing you back for more. I understood this straight away. The penny had dropped...(insert 10p to continue)
So, due to advances in technology and cultural trends, it seems we are in the midst of a massive digital revolution. We knew this anyway, right? P2P filesharing damaged the music industry, e-books are damaging the publishing industry and what next? Free apps are destroying the gaming industry? Maybe.
However, it is evident that although the way people are consuming media (small value purchases but on a mass scale) has changed dramatically since the mass production and distribution of 'physical' consumerism, people still want stuff. This time around, they don't want to pay for it. Or at least they don't want to feel as though they are paying for it. I think this is an important factor to consider when analysing the future of app monetization. How do you provide value for money when your product costs 59p?
So, lots of money is being generated by people downloading free apps and games onto their mobile devices. But how? Look at the freemium business model. And look at it I have.
I am including within this blog entry, a list of links to sites, blogs, articles and even consumers' (in some cases) trolling comments which provide the pros and cons, or the utopian and dystopian arguments surrounding using the freemium business model as a successful means of monetization.
I am compiling this list for a few reasons. (i) for the benefit of anyone reading my blog, some of whom may be interested in further reading, but also (ii) for my own reference. This way I can keep all my research in one place. I will be adding to and editing this list over the following few months and no doubt be filling lots of blog space with other ways in which I intend to further research, analyse and present my findings.
But for now, this should keep us all going...
http://iphone.appstorm.net/general/opinion-general/in-app-purchases-and-the-freemium-business-model/
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