David Barnard, App Cubby:
Eventually, paying for apps may be more the exception than the rule, much like the web, but the business models that are evolving to make that work are often user hostile. On the web we see Facebook’s incessant push to dissolve privacy as they work on monetization. On the iPhone we’ve seen the rise of free-to-play, and other frequently abused attempts at monetization.
Ultimately, the users become the product, not the app. Selling users to advertisers and pushing in-app upgrades/consumables is a completely different game than carefully crafting apps to maximize user value/entertainment. It’d be a shame if the mobile software industry devolved into some horrific hybrid of Zynga and Facebook.
I don’t think it’s surprising that app prices are falling, especially when viewed in the broad context of our society’s expectations for digital entertainment. The same people who think that a $2.99 app is too expensive are the same people who have been raised to expect more for less (or free). When print media organizations joined the web, they (stupidly) gave their content away for free. People were conditioned to expect free news on the internet. On the other hand, I don’t know many people that expect physical newspapers or magazines to be free. Historically, it seems that people simply don’t place as much value on things that aren’t tangible. That is simply the world in which we live.
The larger point made is the fear that companies like Google and Facebook will harm revenue streams from traditional app sales. These companies give users a service for free in exchange for those users’ information. In essence, users are the product and the app is the tool to deliver them to customers (advertisers). However, recent reports on Apple app sales should help alleviate some of David’s concerns. Apple is proving that there will always be people willing to pay a price for a quality product. Count me in that group. I recently deleted my Google account because I would rather pay for similar services than settling for sub-par user-experience design and having my information sold. I do understand the appeal of the ad-supported model. If you are happy with that arrangement, great. Just never forget where you fall in the order of importance.