The Daily Show Takes on iOS In-App Purchases, Hilarity Ensues!
By: Hillel Fuld (@hilzfuld)
So much has been said about app monetization on platforms like iOS and Android, we are not going to get into that again. What is, however, interesting to note is that among all the options to monetize an app, one of the fastest growing methods is in-app purchases.
You know, you are minding your own business playing some game and the only way to pass the level is by upgrading your car or sword to a more powerful one… Or you are snapping a photo in Path and you just can’t seem to find the right effect for the picture, until you discover the extra filters that are going to cost you. The model has proven itself, at least as far as developers are concerned.
According to the 2011 Distimo report “- In 2011, freemium and in-app purchases exploded. In the App Store, half of the revenue associated with the top 200 grossing apps were from in-app purchases, a number that is even greater on Android at 65%.” Read my coverage of the report here.
As 9to5mac points out, “last year, Apple faced a class-action lawsuit over iOS games using the freemium model, which parents argued allowed children to easily rack up hundreds or thousands of dollars with in-app purchases. Apps would normally require a password before completing an in-app purchase, but iOS previously provided a 15-minute window after users entered their password, which subsequently allowed any in-app purchases within the time frame to complete without needing the password again. Of course, Apple no longer offers the 15-minute window.”
In any case, Apple’s request to dismiss the class-action suit, which alleges the company violated consumer protection laws, was refused this week!
I am not sure how I missed this, but a few months back, Jon Stewart covered the topic of in-app purchases in a way only he knows how to. You gotta love the part when the Daily Show correspondant calls the developer of Tap Fish, a virtual aquarium app, a drug dealer!
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