Wednesday, March 17, 2010

New Revenue streams for cultural institutions?

We're starting to explore ways that institutions can use apps to generate additional revenues for the cultural sector. There are some obvious ones such as app sales, which we'll discuss, but there are some less obvious ones that require some fleshing out. Going forward, we'll be exploring as many of these as our partners are interested in.

1. App Sales; Fairly obvious, Apple takes a 30% cut I believe, and the Android AppMarket as well as the Blackberry AppWorld are not mature enough to know how well this plays out (in my experience). In addition, at least for the Blackberry, a lot of Apps are delivered directly to the device by hyperlink (rather than through a store) so its not really clear how RIMM intends to monetize this.

2. Donations: Fairly simple - both Paypal and Googlecheckout have easily configurable interfaces, and most users can be assumed to have accounts with either or both, as well as credit cards, which work with both GoogleCheckout and Paypal. Some cultural institutions that have a centralized giving mechanism (for example museums attached to universities) might have a problem with this initially, but I imagine that if this gains momentum everyone will be signing up, because, after all, more money is better non? Probably most useful for institutions or exhibitions with high affinity visitorship.

3. Sponsored Apps: Havent seen these much, but one can imagine that if an institution has a major patron, this can be an additional promotion outlet that requires minimal physical outlay. This should be particularly attractive to institutions with sizeable visitorship.

4. Advertisements: Obvious and as basic as app sales. Also particularly attractive to institutions with sizeable visitorship - one can imagine that this detracts from the user experience though....

5. Mobile Storefront: Mobile apps can be used as a way to deliver coupons to patrons, or payment method of patrons for gift store items...

thoughts?
ayo

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