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Why are iPhone users willing to pay for content?
Monday, March 02, 2009 - 05:47 PM EDT

"Amid all the discussion of micropayments and other ways that the creators of news and other content can be paid for their work, the iTunes App store is shaping up to be a surprisingly viable way to sell all sorts of information and entertainment," Saul Hansell reports for The New York Times.

Hansell reports, "iPhone users are willing to spend money in ways that Web users are not."

"Why has this happened? Apple has created an environment that makes buying digital goods easy and common. With an infrastructure that supports one-click purchases of songs and videos, it was easy to add applications in the same paradigm. Paying for software, especially games, is not new to Apple customers. So when you see "iPhone: The Missing Manual," by my colleague David Pogue (O’Reilly, 2007), or the Frommer’s Paris guidebook, it feels natural to click," Hansell reports.

"Before media companies rejoice that Apple has found a way to persuade a generation used to getting everything free on the Web to pay for some content, they should look a bit more closely at O’Reilly’s experience with the iPhone manual," Hansell reports. "The book, which sells for $24.99, was initially offered as an iPhone app for $4.99. When the publisher raised the price to $9.99, sales fell 75 percent. O’Reilly quickly dropped the price back down to the lower level."

Full article here.

[Thanks to MacDailyNews Reader "Citymark" for the heads up.]

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Reader feedback page 1 of 1 pages:
Mar 02, 09 - 06:50 pm Comment from: ericdano

If you need a manual for an iPhone, then something is wrong....

Mar 02, 09 - 06:50 pm Comment from: Viktor

Long time ago, there was a thing called "Internet", then it evolved and became "iTunes store"

Mar 02, 09 - 06:52 pm Comment from: Richie

iPhone manual:
If your finger is sticking in something else, simply remove it and use on iPhone surface. iPhone now works.

Mar 02, 09 - 07:19 pm Comment from: SeriousCommentator

Why are iPhone users willing to pay for content?

Well, because content for the iPhone doesn't suck.

Mar 02, 09 - 07:19 pm Comment from: ken1w

Why are iPhone users willing to pay for content? The answer is obvious; iPhones can actually make use of that content in a way that users find desirable. Most other mobile devices cannot. What's the big mystery?

Mar 02, 09 - 07:41 pm Comment from: mogura

Two words: Fart apps

Mar 02, 09 - 08:39 pm Comment from: Kate

iPhone users are also willing to pay because they know that Apple is trying to provide genuine value and cares about the product or service, instead of trying to rape them like the M$/Winblows cartel. So, even when Apple makes decent margins, we know we'll get some great new toys in the future if Apple succeeds. Better results for more people than most charities, in fact, not that there's anything wrong with that...

Mar 02, 09 - 08:40 pm Comment from: No ...

Users buy from iTunes / Appstore because their usually too stupid to realize there are plenty of other alternatives (usually free). Once you get out of the walled garden you'll see there is a whole world out there. Oh the places you'll go!

Compare any of the apps that are both on iPhone and Blackberry and often the Blackberry version is better AND can run in the background (facebook, twitter, aim, etc)

And I'm sorry but I can connect a Blackberry / WinMo device as a hard drive and just copy any ebook I want to the storage.

Mar 02, 09 - 08:43 pm Comment from: Peter

"Why are iPhone users willing to pay for content? The answer is obvious; iPhones can actually make use of that content in a way that users find desirable."

Agreed. I might even go a bit further.

First, the content that I buy needs to be able to be used across different devices--albeit Apple devices. So if I buy a song, I can listen to it on my Mac, on my iPod shuffle, and on my iPhone. If I buy a movie, I can watch it on my Mac, my iPhone, and my Apple TV.

The only company offering that capability is Apple.

In the case of music, I think that's beginning to--or has already--changed. If I buy a song from Amazon, for example, I can listen to it on my Mac, my iPod shuffle, and my iPhone. Video? That's different.

I can buy a movie and watch it on my Xbox360, but not on my Zune (same manufacturer). I can't watch my movie on my Windows Mobile phone. I can download movies to my computer using a service like CinemaNow, but I can't watch them on my Windows Mobile phone. I can use a service like NetFlix and their set-top box and I can watch them on my TV but I can't watch them on my computer or phone.

The only way to have content that goes across all these devices is to either (a) buy the DVDs and rip them in different sizes for each device or (b) pirate them.

Mar 02, 09 - 08:53 pm Comment from: Superchief

No ...

"And I'm sorry but I can connect a Blackberry / WinMo device as a hard drive and just copy any ebook I want to the storage."

Maybe you should look at the FREE apps on the iTunes store that allow you to mount the iPhone drive and copy files to / from your hard drive.

Mar 02, 09 - 08:55 pm Comment from: Duh - Option B

The scene has always adhered to strict encoding standards and all my content is playable across every device I have be it Mp3 / video. (yes even iPod).

Your issue Pete is less to do with the content then the pathetic DRM put to "protect" the content.

Mar 02, 09 - 09:34 pm Comment from: Yes

@ No

Everything you mentioned is available for free. Can you play Super Monkey Ball, Cro Mag Rally, or Sim City on your Blackberry? Do you have an app that can suggest nearby reastaurants? Do you have an app that can tell you what song is playing on the radio?

Mar 02, 09 - 09:35 pm Comment from: LTD

We're willing to pay because we're in the market for a user experience that doesn't suck ass.

It's all about getting value for my buck. And the iPhone and its whole ecosystem delivers this in spades.

For example: the iPhone UI is coming up on two years old now . . . and the rest of this dog-slow industry STILL has nothing even close to it . . . by (yes, it's true) MILES. The exception might be the Palm Pre, but it as yet doesn't exist on the market and is untested.

Mar 02, 09 - 09:37 pm Comment from: MusicDoc

@ No -

It's amazing what ignorance can produce. Why not do some research before you go spouting off?

Mar 02, 09 - 09:45 pm Comment from: Bluefin

@ no

Everyone go easy on poor "No."

I take him at his word: He can connect his WinMo devices.
He can't connect his iPhone and an external HD because he's looking for a kludgy complex way to make it work, and it isn't available in a crappy interface.

Mar 02, 09 - 09:46 pm Comment from: Bluefin

That should have read "as an external HD"

Mar 02, 09 - 09:53 pm Comment from: Noo ...

I'm sorry I don't need to play games - if I did I'd have a way better experience with a Nintendo DS.

Actually yes I can Zagat on the Go for Blackberry

And yes - Nobex Radio companion - shows the last 10 songs for any station on the planet (with click to purchase ability)

Doc - can you use those files after you copy them? Not sure Apple wants you to do that. Funny why so many users jailbreak so the iPhone is usable (and outside of the iTunes ecosystem)

If all you have are some games and a no exclusive applications you better pray Apple has some really good June annoucements as there are more and more options that do the same if not more.

Mar 02, 09 - 10:02 pm Comment from: dominus

As an ipod touch and windows mobile/phone user I can give you a little info on this. iPhone users are willing to to pay for content because it is really the only viable option for most users. While the iTunes/iPod/Iphone/appletv/mac compatibility is nice and easy for most users, In my opinion (as one that started as a PC only user and now use BOTH) is limited. While there are LOTS of items available for the iPhone I am disgusted by apple's policies. While I under stand them wanting everything to just "work" what about peoples decision to choose, and not just the choice to use it or not, but the choice to have what they want on it. Apple has yet to allow a browser other than Safari (hmm at least MS allowed other browsers before the doj business). and what about this business of deciding what content is acceptable or not for an iPhone. Bottom line they pay for it because if they want the content they have no other viable option. not with out possible ramifications. Personally I prefer choice even if it doesn't always "just work" /rant (sorry want' meant to be a rant)

Mar 02, 09 - 10:04 pm Comment from: Yes!

Get a mac...

"No, they don't have any games"

Get an iphone...

"No, all it has is games..."

Hmm... tongue laugh

Mar 02, 09 - 10:10 pm Comment from: LTD

LOL @ the comments from people who plainly don't have an iPhone, yet think they know what they're talking about when it comes to the App store.

Mar 02, 09 - 10:18 pm Comment from: silverhawk

Dom
Are you referring to what choice of virus, malware or worm you want on your devices? No thanks, I don't want any other browser on my iPod touch. Safari works just fine, thank you. You sound to imbedded in MS to know any better.

Mar 02, 09 - 10:29 pm Comment from: Big Als MBP

The people who bitch about iPhone being controlled by Apple seem to forget that almost every other cell phone is controlled by the telco or, in the case of business phones, by the telco and the IT department.

Apple's controls are far less onerous than ATandT's or Rogers' controls.

The telcos own the rights to the airwaves and they're just about to pay through the nose for those rights. You, as a subsidized cell phone buyer and telco subscriber have virtually no rights.

Choice? You get to choose witch cell mate bends you over the barrel. Pun intended.

Mar 02, 09 - 10:31 pm Comment from: jdsweet

"because their usually too stupid"

Misuse of grammar whilst accusing others of stupidity make Ungar smiley. Me Ungar.

Mar 02, 09 - 10:32 pm Comment from: a pending bomb

Apple fanbois harp on the same tired things. Enjoy your growing market share as with each tick up you will find more and more assaults from virus / malware and trojans.

Judging from the current way Apple addresses security flaws your about 1 major outbreak away from rendering OS X compromised and with the majority of Mac users falsely thinking they don't need any protection - heavens it's going to be as MDN says often "a blood bath!"

Mar 02, 09 - 10:32 pm Comment from: silverhawk

@Big Als MBP
I wonder what the new taxes will do to cell phone subscribers! Drop in favor of land lines?

Mar 02, 09 - 10:34 pm Comment from: dominus

No not imbedded. My major reason is lack of support. My preferred browser on ANY platform is firefox. And lets not get started on the whole "mac's do get virus' ". In my school district my counterpart on the "light side" recently got nailed with a nasty trojan on his mac, now sure some might say he was browsing sites he shouldn't have, but doesn't that go to choice?
Any way my comments were not really directed at the product, functionality, or usability but merely at apple not making the choice available. While I am NO fan of MS's asp or msjvm of old, support would be nice for asp. That is one of the MAJOR reasons we have not gotten touch's for all of our district administrators. It is needed for our SIS. Aside from the anti-competitive connotations why do we need to be protected? If you don't want any other browser on yours silverhawk, then you don't need to install it. Personally I would like the choice, to install one. Or for Sun to be able to finish Java for the iPhone/Touch.

Mar 02, 09 - 10:59 pm Comment from: TheAvenger

@dominus

Would you tell me the name of the trojan your friend got on his mac?

Mar 02, 09 - 11:25 pm Comment from: silverhawk

Dom,
You certainly do have a choice of which browser to install on your Mac. Just not on a touch. Your "mac's do get virus' " is very valid, and your friend getting a nasty trojan was his/her own fault and you know that very well. I certainly hope he/she didn't get the trojan on "company" time, that wouldn't be good on tax payer supported equipment on tax payer time.

I used to use Firefox to read one daily news site that would not work with Safari. I suppose because it is an IE site. I was getting too many ads coming though so I got rid of FF and never read the site anymore. Safari is the one and only browser now, and proves to be the best I have used.

Mar 02, 09 - 11:27 pm Comment from: silverhawk

Dom
Your "mac's do get virus' " is very valid, except none currently exist. What is it now, 150,000 to none?

Mar 02, 09 - 11:54 pm Comment from: NHL

@dominus
So, let me get this straight - your proof that Macs get viruses is, your "friend" allowed a trojan on his Mac?

To you, a "virus" = a "trojan" ?

(And it sounds more like it happened to your "friend of a friend of your wife's cousin's co-worker".)

Mar 03, 09 - 12:46 am Comment from: Bah

OS X has been around for nearly ten years now; I'm really not concerned about any virus blood bath. Even back in the pre X days there was a huge disparity with the virus ratio MS vs. Mac, and that was before Apple's market share totally tanked the first time. Windows is just inherently less secure, inherently more swiss cheese-like.

On topic: I actually do suspect a lot less Apps would be paid for if the iPhone (and I love mine) weren't locked down. I still think there must be a better solution, but for time being, this'll do. The convenience and the incredible ease of use make all the difference in the world compared to those other devices.

Mar 03, 09 - 03:40 am Comment from: Bruno

Just so the less wellread of us know, jailbreaking an iPhne does not remove it from the iTunes ecosystem.
Thanks.

Mar 03, 09 - 06:17 am Comment from: kevt

imo the main reason that iphone apps/content sell so well is that they are reasonably priced. After years as a Palm user (and a happy one until iphone G3/app store) I was amazed at the amount of apps $1-$5. Most Palm Applications were nearly always $10-$25. Software developers for the iPhone seem to have grasped the basic concept that low cost = high sales volume.

Mar 03, 09 - 07:31 am Comment from: Road Warrior

Ah Viktor, lovely post. May I please make a modification?

A long time ago there was a program called Hypercard that used a concept called a hyperlink. They evolved to become the "Internet", then it evolved further and became "iTunes store"

Mar 03, 09 - 09:31 am Comment from: LTD

@ a pending bomb:

Give it a rest. We've been hearing the same shit since 2001. Where's the beef?? We're still waiting.

Mar 03, 09 - 09:42 am Comment from: jtc

@NHL

His friend was probably one of the few idiots who got the virus through ichat and saved it to his mac and ran it....

Mar 03, 09 - 09:58 am Comment from: MacSheikh

@ No

Yes.

You ARE a dumbass. An ignorant one at that.

Mar 03, 09 - 02:18 pm Comment from: sarasota

After paying for AT&T;and the data plan there isn't much left for Apps. :-p

Mar 03, 09 - 02:32 pm Comment from: Not Bill

@ No

And a Blackberry goes so well with a pocket protector!

Mar 03, 09 - 02:45 pm Comment from: Not Bill

Something I think is great about the Apps Store is the way it can put any creative coders work up for sale and deliver 70% on to him/her. Giving up this bit of control and money allows a multitude of creativity to be harnessed. I know there are complaints about the one's that do not make through the screening process. Those are the outliers thought. The main stream is making it though and we are purchasing them.

As for the Missing Manual price: With no production and distribution overhead Pougue is probably making about as much per copy. If he is not, I think he should be.

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