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Pragmatic app pricing

marco.org

31–33 of 33 posts

Re: Pragmatic app pricing

#31
post #17
post #6

Looks like we've got some interesting thoughts from Marco. Seems like he regrets keeping Instapaper a paid app and not making it free to go after marketshare and take on Pocket. He seems to conclude he "lost" against Pocket, and now doesn't want to make the same mistake with Overcast. I personally don't think the patronage model will go very far. I think he's doing more to make the full app free and gain marketshare,…

But let's assume we're not in a bubble, so raising funds isn't an end in and of itself. Where does the money come from to give investors a return when the entire app is free?

Podcast advertising is fantastically profitable even though it's extremely unsophisticated. As the profit margins shrink due to increased competition, more sophisticated ad formats are going to come along to keep the lights on.

Right now, every podcast listener hears the exact same ad regardless of where or when they are listening. It seems obvious that at some point soon, podcasts will include a custom code for "insert ad here" and an ad exchange will bid on that 30 second spot and put a targeted ad there. Currently, the MP3 + RSS format of podcasts doesn't support this degree of sophistication which is what Marco is alluding to with it's walled gardens comment. There's a goldmine for whoever can figure out how to move podcasts into a vertically integrated format and define the platform.

Re: Pragmatic app pricing

#32
post #11

Earlier quoted context omitted.

Just one persons experience, obviously, but I have paid for podcasts before. Free podcasts are by far the majority of what I have listened to, but I pay to get the full episodes of "The NoSleep podcast", and have donated to other podcasts when they have the option there and I have liked them enough.

Cool - but do you feel like you are paying for the content or are you paying for the experience/environment that you listen to the podcast within? My point was just that when people do pay, in their mind I think they are paying for the podcast itself...and don't really care all that much about the middle men (same basic thing with music really -- there are, of course, exceptions)

Oh, I see. No, I am definitely not paying for the experience/environment per se, but I did pay for a podcast app that had features that I wanted. I.e., the most popular free podcast app on Android (Stitcher) didn't have any way to speed up the audio, cut silence, etc, so I paid for an app that did have those features.

Maybe it does now, this was a while ago

Re: Pragmatic app pricing

#33
post #9

Earlier quoted context omitted.

He also made close to a million on the sale of instapaperfeed to Betaworks...so yeah, he's def. not in the same boat as many independent devs...

Source?

A couple of people I trust with inside knowledge of the deal (sorry can't provide specifics, been awhile and I didn't realize that the selling price was not public knowledge when I posted this).
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