Comments on: Are people more willing to pay for digital goods on mobile devices? http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/ Fri, 10 Sep 2010 13:10:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: » A Collection of Mobile Resources: Everything from Design, Development to Strategy http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-8683 » A Collection of Mobile Resources: Everything from Design, Development to Strategy Wed, 26 May 2010 23:24:45 +0000 http://cdixon.org/?p=2351#comment-8683 [...] Are People Willing to Pay for Digital Goods on Mobile Devices? [...] [...] Are People Willing to Pay for Digital Goods on Mobile Devices? [...]

]]> By: binggordon http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5887 binggordon Mon, 11 Jan 2010 23:55:13 +0000 http://cdixon.org/?p=2351#comment-5887 Agree with David that AppStore is a killer app. When proprietary data becomes available, i believe it will show that virtual good pricing is roughly similar on mobile vs the web, but that there are fewer disconnects during AppStore commerce. Fewer clicks equals fewer disconnects. <br><br>I am also interested in what drives perceived value of VG. At the VG conference, several asserted that VG prices rise when they are tradable (more liquidity) and show-offable (bling). I believe that art quality also matters, and I tried to test whether 3D commands higher prices, but wasn't able to run a good enough experiment. Agree with David that AppStore is a killer app. When proprietary data becomes available, i believe it will show that virtual good pricing is roughly similar on mobile vs the web, but that there are fewer disconnects during AppStore commerce. Fewer clicks equals fewer disconnects.

I am also interested in what drives perceived value of VG. At the VG conference, several asserted that VG prices rise when they are tradable (more liquidity) and show-offable (bling). I believe that art quality also matters, and I tried to test whether 3D commands higher prices, but wasn't able to run a good enough experiment.

]]> By: bing gordon http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5868 bing gordon Sun, 10 Jan 2010 01:46:40 +0000 http://cdixon.org/?p=2351#comment-5868 Totally agree that there is less friction for users who pay for virtual goods on App Store than on the web, today. The best evidence is currently proprietary, but will be broadly known as virtual goods becomes a "normal" monetization scheme for more companies.<br><br>Unclear whether convenience increases volumes at the same price, or affects pricing of virtual goods. In the meat world, convenience often earns a premium price, but not always.<br><br>Other possible affects on virtual goods pricing mentioned at the last Virtual Goods conference included tradability, portability, and "blingability" (how easy to show off to others). I am also curious about whether art quality matters, or whether 3D gets a higher price than 2D. Totally agree that there is less friction for users who pay for virtual goods on App Store than on the web, today. The best evidence is currently proprietary, but will be broadly known as virtual goods becomes a “normal” monetization scheme for more companies.

Unclear whether convenience increases volumes at the same price, or affects pricing of virtual goods. In the meat world, convenience often earns a premium price, but not always.

Other possible affects on virtual goods pricing mentioned at the last Virtual Goods conference included tradability, portability, and “blingability” (how easy to show off to others). I am also curious about whether art quality matters, or whether 3D gets a higher price than 2D.

]]> By: Are people more willing to pay for digital goods on mobile devices? | Igniting Startups - nPost http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5591 Are people more willing to pay for digital goods on mobile devices? | Igniting Startups - nPost Sat, 02 Jan 2010 16:19:59 +0000 http://cdixon.org/?p=2351#comment-5591 [...] From cdixon.org [...] [...] From cdixon.org [...]

]]> By: chris dixon http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5764 chris dixon Fri, 01 Jan 2010 21:39:33 +0000 http://cdixon.org/?p=2351#comment-5764 I totally agree that making payment easy helps a lot. But I think its a necessary but not sufficient condition. You also need value + scarcity. Which is why making seamless payment for, say, online desktop news wouldn't save the news business. I totally agree that making payment easy helps a lot. But I think its a necessary but not sufficient condition. You also need value + scarcity. Which is why making seamless payment for, say, online desktop news wouldn't save the news business.

]]> By: chris dixon http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5573 chris dixon Fri, 01 Jan 2010 13:39:33 +0000 http://cdixon.org/?p=2351#comment-5573 I totally agree that making payment easy helps a lot. But I think its a necessary but not sufficient condition. You also need value + scarcity. Which is why making seamless payment for, say, online desktop news wouldn't save the news business. I totally agree that making payment easy helps a lot. But I think its a necessary but not sufficient condition. You also need value + scarcity. Which is why making seamless payment for, say, online desktop news wouldn't save the news business.

]]> By: Huge Jump | Sweaty Gooch http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5564 Huge Jump | Sweaty Gooch Fri, 01 Jan 2010 11:32:29 +0000 http://cdixon.org/?p=2351#comment-5564 [...] Are people more willing to pay for digital goods on mobile devices? (cdixon.org) [...] [...] Are people more willing to pay for digital goods on mobile devices? (cdixon.org) [...]

]]> By: ariel http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5554 ariel Thu, 31 Dec 2009 18:23:45 +0000 http://cdixon.org/?p=2351#comment-5554 To illustrate the point that payment ease of use drives behaviors:<br><br>There is a quasi dating service in Europe that has both a mobile and desktop version. The service allows users to buy a premium profile that pushes their profile to the top of the list for a few hours-- basically a user generated and paid ad.<br><br>The vast majority of their revenue for this product comes from the mobile context (very lucrative). In a mobile context to pay for the product the user hits one button and the charge is added to their carrier bill. While on desktop pc user has to either check-out via PayPal or enter credit-card information. To illustrate the point that payment ease of use drives behaviors:

There is a quasi dating service in Europe that has both a mobile and desktop version. The service allows users to buy a premium profile that pushes their profile to the top of the list for a few hours– basically a user generated and paid ad.

The vast majority of their revenue for this product comes from the mobile context (very lucrative). In a mobile context to pay for the product the user hits one button and the charge is added to their carrier bill. While on desktop pc user has to either check-out via PayPal or enter credit-card information.

]]> By: chris dixon http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5479 chris dixon Tue, 29 Dec 2009 19:09:13 +0000 http://cdixon.org/?p=2351#comment-5479 couldn't you have made almost identical arguments 15 years ago about the desktop internet?<br><br>e.g.<br>1) the convenience of having access *instantly online* (versus e.g. physical newspaper magazine) is a real benefit that people understand and will pay for<br><br>2) the ISPs like AOL provide toll-booth and pay wall mechanisms enforceable<br><br>etc couldn't you have made almost identical arguments 15 years ago about the desktop internet?

e.g.
1) the convenience of having access *instantly online* (versus e.g. physical newspaper magazine) is a real benefit that people understand and will pay for

2) the ISPs like AOL provide toll-booth and pay wall mechanisms enforceable

etc

]]> By: Richard Jordan http://cdixon.org/2009/12/27/are-people-more-willing-to-pay-for-digital-goods-on-mobile-devices/comment-page-1/#comment-5478 Richard Jordan Tue, 29 Dec 2009 19:05:52 +0000 http://cdixon.org/?p=2351#comment-5478 I have to disagree with you on the topic of people paying for mobile content being a temporary situation. There are a couple of factors that play into this: <br><br>1) the convenience of having access while mobile is a real benefit that people understand and will pay for<br><br>2) the device/network situation provides a greater degree of control to the device and makes the various toll-booth and pay wall mechanisms more enforceable<br><br>Other commenters have added to this the obvious simplicity of mobile payment, and it's possible that if it were easier to pay on the fixed position Internet people would have done so. Makes sense to me.<br><br>The mobile networks have spent a couple of decades training people to value what they get on mobile devices and to pay for it. This helps with the transition. You dismiss this, but I think it has a real impact. <br><br>media content is not exactly interchangeable like perhaps your chess app is. I am not going to move to Britney Spears themed music content because it's free and my Glasvegas themed music content has to be paid for. I have to disagree with you on the topic of people paying for mobile content being a temporary situation. There are a couple of factors that play into this:

1) the convenience of having access while mobile is a real benefit that people understand and will pay for

2) the device/network situation provides a greater degree of control to the device and makes the various toll-booth and pay wall mechanisms more enforceable

Other commenters have added to this the obvious simplicity of mobile payment, and it's possible that if it were easier to pay on the fixed position Internet people would have done so. Makes sense to me.

The mobile networks have spent a couple of decades training people to value what they get on mobile devices and to pay for it. This helps with the transition. You dismiss this, but I think it has a real impact.

media content is not exactly interchangeable like perhaps your chess app is. I am not going to move to Britney Spears themed music content because it's free and my Glasvegas themed music content has to be paid for.

]]>