Premium Services Fastest Way To Web Site Profitability

April 16, 2009

The thinking among Web entrepreneurs is changing. Online advertising is out and premium services are in.

With more newspapers and news organizations talking about imposing online subscription fees, one might think the Web is headed toward a future of private clubs and walled enclaves.

Online advertising is losing favor, but subscriptions dont appear to be the answer

Online advertising is losing favor, but subscriptions don't appear to be the answer

But most entrepreneurs appear to believe a combination of free and for-fee services might be the key to their digital futures.

This thinking was reflected in a survey of attendees at the recent Web 2.0 Expo in San Francisco. The study, commissioned by Yola, found that 78 percent of respondents believed the combination would help them weather the downturn.

In contrast, 42 percent believed a subscription model would be the fastest way to profitability.

This change in thinking could still alter the freewheeling, everything-for-free environment of the Internet. And it could prompt a shift away from online advertising.

The same survey found that only 39 percent of people believed hosted ads would bring profitability. And only 8 percent said online auction sites would grow this year.

The Internet appears poised for another key shift in thinking. It is time to noodle on that.


New IPhone OS Has Cut And Paste Along With New Subscription Business Model

March 17, 2009

Apple unveiled a new version of its iPhone operating system on Tuesday with several long-sought features, including cutting and pasting, but without some widely anticipated additions.

The iPhone OS 3.0, to be available this summer and which was released immediately to developers for beta testing, brings search to iPhone apps as well as provides a dedicated search application called Spotlight.

IPhone OS 3.0 also includes push notification, says Scott Forstall

IPhone OS 3.0 also includes push notification, says Scott Forstall

But it doesn’t include voice dialing or the use of the iPhone as an external cellular modem for a PC, as some analysts had expected.

The upgrade, which will be delivered free to existing iPhone customers, does extend “landscape” views to applications such as Mail, Stocks and Notes and permits voice memos and the recording of interviews.

And perhaps more importantly, it offers a new business model to developers of third-party apps for the popular smartphone, which so far has sold 17 million units since its launch in June 2007. Apple said app developers will be able to add subscription billing for their apps – a feature particularly useful for magazine publishers, game creators and e-book sellers.

Developers keep 70 percent of subscription revenue, just like they do when the sell an app for a one-time fee, said Scott Forstall, senior vice president of iPhone software.

Developers can embed maps and take advantage of peer-to-peer, says Forstall

Developers can embed maps and take advantage of peer-to-peer, says Forstall

The new software also supports “push notification,” an anticpated technology that sends alerts and notifications to phone users. “We’re late with this one,” said Forstall, noting the company had hoped to complete the feature by the end of last year.

IPhone OS 3.0 as well lets developers embed maps into applications and set up “peer-to-peer” connections for phone owners to do jont activities, such as play games.

As for cut and paste, the feature works with applications such as e-mail, the Safari browser, Notes and Photos. Tap twice to select a passage and shake the phone to undo.


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