24 January 2009 Size Doesn’t Matter
Gen Y want everything free, but are happy to pay a small amount for instant gratification. If it’s worth paying for, we’ll pay for it.
Here are some examples…
+ iPhone Applications
While most applications for the iTouch and iPhone are free, some are priced incredibly cheap. Enigmo, a puzzle game priced at just $2.49, has made $1.8 million in sales.
+ iTunes Music
Apple’s attempt to overcome piracy hasn’t been 100% successful, but charging $0.99 for a song has certainly helped. Cutting out a number of middle men, both Apple and the artists have earned far more than through traditional sales of singles and albums. Television series and movies are slowly building momentum under the same model.
+ Second Life Avatars
While Second Life is now quieter than the audience of an Eddie Murphy movie, at its peak, 15 year old programmers were making enough to put themselves through college selling $0.40 avatars.
+ Ricky Gervais Audiobooks
Podcast turned Audiobook, for just $10 you can buy hours and hours of hilarious content that has made the Ricky Gervais trio millions.
+ Guitar Hero Downloads
Later versions of Guitar Hero allow you to jump online and download your favourite tracks to play against, in a somewhat similar fashion to the Apple Store. Aerosmith have more from Guitar Hero than from any of their album releases.
Micro transactions, with the ability to cut out any middleman, will be the way we produce, distribute and consume content in the very near future. What other examples are there?