Apps don't generate profit for publishers. 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
Mobile includes both:
Pocketable(phones, iPods, gaming devices)
Smartphones(apps and mobile web)
Podcasts(video and audio)
BYOD(bring your own device)
Mobile web sites
Portable(tablets and eReaders)
‘Dumb’ phones(voice calls and txting)
otherdownloadable content (PDFs, eBooks)
mobile devices provided on-site by SI museums
Large-screen websites on mobile devices
The Costs of Mobile
Rev shares: 30% to Apple, n% to platform provider
Development (app/mobile website)
Software: CMS, statistics, distribution
For-fee services (or staff time)
Players, charging racks, headsets, lanyards
Software: statistics, distribution
Project management & staff time
Content, include licensing of assets
+ Free Marketing (off-site)
Common Mobile Business Models http://conference.archimuse.com/mw2011/papers/getting_on_not_under_the_mobile_20_bus
Freemium: National Constitution Center http://itunes.apple.com/us/app/national-constitution-center/id399722048?mt=8
Subscription: Museum Magazines…& more?? Your magazine or catalogue here??
Open Data: http://www.brooklynmuseum.org/community/blogosphere/2009/04/17/brooklyn-museum-api-the-iphone-app http://www.brooklynmuseum.org/community/blogosphere/2010/12/01/app-store-confusion-necessitates-api-changes
Red Ink Businesses Invaluable collections = highest possible quality Public good = relevant, accessible &accountable ‘Forever business’ = must be sustainable Max Anderson, Prescriptions for Art Museums in the Decade Ahead, CURATOR, The Museum Journal, Volume 50, Number 1 January 2007
Museum Mobile Business Strategy Principles: Profitshould not be the imperative; Mobile should instead aim at network effects in support of mission goals, existing revenue streams and priority initiatives; And transforming the way we do business, to make it more effective, efficient, open and accountable to stakeholders.
A crazy idea? “A Wikipedia of the Physical World” http://smithsonian20.si.edu/schedule_webcast2.html
Wikipedia …78 million visitors monthly as of January 2010. There are more than 91,000 active contributors working on more than 17,000,000 articles in more than 270 languages. That means the average contributor works on ~186 articles?!
SI Mobile’s Vision Recruit the world to increase and diffuse knowledge by using mobile platforms to enlist collaborators globally in undertaking the real and important workof the Institution. Put the Smithsonian not just in the people’s pockets, but in their hands.
The People’s Institution James Smithson: “for the increase and diffusion of knowledge” Louise RochonHoover,"Secretary Henry Posts DailyWeather Map in Smithsonian Building, 1858.” The Megatherium Club, a group of young naturalists who collected for the Smithsonian in the 19th C. http://en.wikipedia.org/wiki/Megatherium_Club
The Multiplatform Museum
The Multiplatform Museum
More than multiplatform…
The Museum is a Distributed Network Edward Hoover, 2010, from Flickr.
Chandra Xray Observatory
Design USA at Cooper-Hewitt “Don’t even think about not using it because then you won’t truly see the show.” Roberta Smith, NY Times, 14 Jan 2010 http://www.nytimes.com/2010/01/15/arts/design/15design.html http://smithsonian-webstrategy.wikispaces.com/Design+USA+iPod+Touch+tour
Set in Style iPad App Cooper-Hewitt National Design Museum
Non-profit Network Effects Quality of the overall visitor experience Volunteer recruitment & crowdsourcing Community development Institutional collaborations, e.g. content sharing Membership & member benefits Donations Ticket & product sales Monetizing user data: enhanced sponsorship value Edward Hoover, 2010, from Flickr.