Mobile Social Media and Museum Business Models
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Transcript of Mobile Social Media and Museum Business Models
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Mobile Social Media& The Business of Museums
Tate Handheld Conference 2010
6-7 September 2010 Nancy Proctor [email protected]
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The Costs of Mobile
Rev shares: 30% to Apple, n% to platform provider
+ MAINTENANCE
Platform On-site infrastructure
Project management & staff time
Content, include licensing of assets
Marketing
Interface design
Development (app/mobile website)
Software: CMS, statistics, distribution
For-fee services (or staff time)
SaaS
Players, charging racks, headsets, lanyards
Software: statistics, distribution
Operations staff
+ Free Marketing (off-site)
Opensource platform Minutes
Text messages
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Apple CEO Steve Jobs has said, the App Store has generated more than $1 billion in revenue for developers. That sounds like a big number. But… One billion dollars in revenue for the approximately 225,000 apps is $4,444 per app--significantly less than an app costs to develop. …A typical iPhone app costs $35,000 to develop. The median paid app earns $682 per year after Apple takes its cut. With these calculations for the typical paid app, it takes 51 years to break even. It's not any better for free apps. A free app also costs about $35,000 to develop. But there are so many free iPhone apps that at a rate of 2 second per app, it would take approximately 34 hours for someone to check out each one. That's not great odds for a revenue model based on advertising.
http://www.fastcompany.com/1684020/the-great-app-bubble
Apps don't generate profit for developers.
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Museum Metrics & Constraints
1. Invaluable = highest possible quality
2. Public good = relevance & service for all
3. Forever business = must be sustainable
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Business Models
Cost to end user1. Rental (on-site; usu. revenue share)2. Digital retail (app/download)3. Freemium (e.g. in-app sales)4. Donations (e.g. by text message)5. Subscription (in discussion…)
Free to end user1. Loss leader/mission imperative2. Sponsorship3. Ad-supported4. Monetize data
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Non-profit network effects
Edward Hoover, 2010, from Flickr.
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1. Quality
EGO-TRAP: ANNE KAHR-HØJLAND Tate Trumps
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2. Relevance
http://stedelijk.medialab.hva.nl/
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3. Sustainability
http://www.gipuzkoa2.net/http://www.si.edu/commons
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4. Revenues Exhibition apps
Freemium content to support the (free) experiences
Micropayments
Microdonations
Sponsorship & advertising
Datamining
Paid games
eCatalogues & subs…