99 cents apps, thanks so much for setting expectations of consumers that everything on the web should be free or sub $1 range.
They've got people paying for software. Normal people. People who have probably never paid for software in their life, save for Office (probably bundled with their PC), and a few XBox games
They've got used to paying 99c for apps, then they've slowly adjusted their price expectations up to the $5-10 range for iPad apps, and the advent of the Mac Store looks like helping ease prices people are willing to pay even higher. Pixelmator has sold more than a few copies at $30. Cheap for what it is, but people are buying it. Apple have trained people to pay for software
Someone paying $10 for your software is great but not as great as someone paying $4.95 monthly for the use of a service.
The difference is that if you intend to hold on to your userbase on a subscription basis that fart apps are not going to cut it (pun intended), you will have to deliver value for the money your subscribers pay you.
Apple has not conditioned people to pay for software any more than google has conditioned people to click on ads, both companies simply used their economies of scale to make it worthwhile to market to their particular audience, google through their adwords (not adsense!) program and apple through their app store.
Just wait for the 'facebook phone' and it's associated app store, it's only a matter of time.
It's not as though Steve Jobs invented 'software for sale' with the app store, software has been sold to individuals and businesses alike for decades now, the things that have changed the equation here are:
- download sites for PC software
- open source
- massive piracy software has been sold to individuals and
businesses alike for decades now, the things
that have changed the equation here are:
- download sites for PC software
- open source
- massive piracy
And for a long time the first place to get software from (particularly games) were BBSs.
In these times of Steam, App Store(s) & easy on-line purchases via the likes of Paypal I expect people actually buy software a lot more often than in the 80s or 90s.
Download.com and Tucows basically destroyed the shareware movement, barring a few exceptions.
The upside is that there are now many more people that are using software so the markets are much larger in potential and the area where the app stores shine are convenience.
A few clicks to download and pay for a piece of software is a massive convenience when compared to the hassle that used to be involved in buying licensed software.
Eh, were you actually around then? Copying floppy disks was generally just as easy as anything else, and the skill level of the average computer user was much, much higher. Based on my experience I'd say piracy per capita was nearly 100% in the 80's. These days there are large swaths of computer users who simply don't install anything that isn't pushed at them, let alone browse through TPB. Before the Internet became popular in the mid 90's a large number of BBS's were dedicated to piracy.
Keep in mind ASP on software is a fraction of what it once was. In 1983, Lotus 1-2-3 sold for $495. Duplicating the functionality of the $150 Office Home and Student would have been over $1000.
Yes, large numbers of BBS's were dedicated to piracy but large numbers of meters of shelf space in retail stores were dedicated to 'boxed' software too.
Hearing my uncle say 'This is less than a coffee, why not?' or 'For this price (10$), I get more fun and entertainment than going to the cinema' has no price.
Thanks Apple
People got used to paying for ringtones, and then the market pretty much disappeared.
Part of me thinks the app store model is a short term fad.