I think hybrid business models are worth looking into. Look at the business
models of some of the free applications. For example, the Bank of America
application is free. Although the development investment was probably modest
(for a bank), the expense can be justified by the brand-building the
application provides. They could have perhaps charged for it, but they
weren't dependent on the revenue of selling the application. Another
perspective is the whole services vs applications model. You can charge only
once for the application, but repeatedly for the service. Yet another
perspective is to look for who benefits besides the user. Remember the
original MTV? The users got free music videos. The record stores sold more
music. This leads to another perspective. Think about what your users would
buy besides your application.

On Sun, Jan 17, 2010 at 11:28 AM, Business Talk <
[email protected]> wrote:

> Do you think that the business model based on an application that
> displays/manages paid content is workable in the android environment?
> I think it is not due to the application market’s lack of support for
> the paid content?  What I mean is that applications, such as iTunes,
> can be installed from the market but the paid content, such as mp3s,
> can not be purchased from the market. So, it would have to be
> purchased through a service outside of the market, as it is the case
> with iTunes, which is a well established service. In case of a new
> service, the user would have to open a separate account with the
> charge information, which is always a problem, specially when it’s a
> new service. Also, the service itself would have to manage the
> financial transactions, which introduces additional complexity. Any
> thought on the subject?
>
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