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A Missing Revenue Stream From Mobile Apps

over 3 years ago | From The New York Times | Author: JENNA WORTHAM

“You got a great deal for a long time,” she told one person on Twitter. “All $50 does not go all to me. So sorry to see you go,” she tweeted at another.

When we met a few weeks later at her haunt of choice, the Carlyle hotel on Manhattan’s Upper East Side, she told me that she’d had no choice but to raise her price. Her old application, which was priced at a few dollars to download and gave users free access to all of her daily and monthly horoscopes, wasn’t bringing in enough money to sustain her business. The newly released version of her app is built around a freemium model, meaning it is free to download and offers abridged versions of her horoscopes. Users have to pay extra to read the full versions.

“Readers think I’m greedy and I want to address that,” she said. “It costs a lot to manage content.”

In addition to paying to upgrade her mobile applications — a process she said cost six figures — she said she also had to pay for researchers and editors to help churn out the 400,000-plus words she estimates that she publishes each year on the web and through her applications...

       

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