![]() ![]() Nuvo has a great system that distributes music to multiple rooms, offers in-wall touch-screen controllers, and has a music server that can stream audio from its hard drive or from various online streaming services. The best example of this that I’ve seen was when Nuvo introduced a mobile app for their home music system. It’s rare to find software in the App Store more than $9.99, and the only software I’ve seen in that category are apps that work with expensive desktop apps or with hardware, and can charge $14.99 or $19.99 because if you’re a captive user of their other product, you will pay to have a compatible mobile app. With the App Store and viral marketing, the most common price for apps shot quickly to the lowest possible price, $0.99, if not free. A bit less maybe, but still in the double digits. If you look back to the days of the Palm Pilot or Psion, the software prices were not that different than desktop software. Add to that viral marketing on social networking sites, and you had the perfect storm to lower the price of software. The App Store as a searchable marketplace for apps solved this problem, and allowed developers to charge less for their applications since their distribution was handled by Apple, and anyone could find their applications in the App Store. Some smaller developers could charge less, especially when the Internet brought down distribution costs, but it was still hard to get the word out. ![]() That meant you couldn’t charge too little for your app, or your acquisition cost for that customer would be more than you were getting paid. You needed to ship products, or put them in retail stores where it cost a lot of money to get shelf space. In the old days you had to pay for the media it was distributed on, whether a floppy disk or a CD-ROM, and the printed manual and box as well. Traditionally, software companies had to spend money to market their applications – through magazines, newspapers, and online. One of the big effects of the App Store was the race to the bottom. ![]()
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