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iOS pay per use model

December 24, 2011

The App Store is overflowing with half a million apps. Android Market too would get there soon enough. And we are not even counting all the websites out there. Bottom line is there we are literally swimming in resources and still neither our productivity nor our decision making has gotten any better. We are as unorganized and confused as ever.

Reason is simple, there is an oversupply of apps most of which simply duplicate each others functionality because the app revenue model is based on buying apps. The solution could lie in pay per use apps. If Apple implements such apps, it would soon have to implement component apps.

What Apple needs to do is implement pay per use app revenue model. So only when we use an app, would we need to pay for it. Only Apple can implement such a model because only Apple has the tight control that such a model requires.

There are two basic issues in such a model. (1) how to pay for functionality within the app – say sharing something on Twitter using a unique shorturl and then tracking the stats for that share. (2) how to interchange these components transparently,

This is the reason such a model calls for Mega Apps, of which all the various functions are components.

Apple would not need to make any changes to its existing ecosystem. It would simply need to add a new app category call Mega Apps (or something) which would be able to charge micropayments on an ongoing basis or aggregated payments on a weekly or monthly basis. And the components of which could be added/removed/changed transparently.

Later on Apple could even implement a virtual currency which enables Free Mega Apps. So if I buy a 12 pack of Diet Coke, I may get a voucher of 6 Apple dollars. If I redeem these in the App Store, I would be able to use Free Mega Apps which charge me Apple Dollars.

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From → Tech

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