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Operators really, REALLY hate AppStores

March 3rd, 2009 by Arjan Olsder Posted in Analysis & Editorial | 7 Comments »

Hungrymobile
iPhone, Android, Windows Mobile, Palm, and now even Nokia with its
OVI. If you say AppStore, then most operators content revenues and
moods probably start shivering. Why is that? They are afraid that the
“AppStore”s, lets call them, will hit their mobile content, primarily
mobile game revenues – a lot. And yes, it’s true – they will.

Now let’s look at the timeline of things how they happened first.
First, Apple introduced their iPhone AppStore – a concept based on
their iTunes Music Store, and was thought to be a success. Even though
in most countries it needs registration and credit card details,
eventually if you go through this great pain, you can experience good
shopping and downloading of mobile content. Next, device manufacturers
became very excited about this, and all wanted to implement this. Well
let’s stop here for a while



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    7 Responses to “Operators really, REALLY hate AppStores”

    1. Bring it and let the fight begin! 🙂

    2. dns says:

      I suppose if operators starting pushing — let’s say, their own app stores –, there could be a collapse of the app store idea with confused users. On the other hand, operators could try to grab exclusive content and that could benefit everyone too. Oh well, I think this isn’t the last time we hear about this topic.

    3. Mark Wilcox says:

      Are you a supplier to major network operators by any chance – don’t like the competition opened up wide? 🙂
      Seriously, the network operators have had many years to do this right and the device manufacturers have simply given up waiting.
      Also note that there is absolutely no way that the likes of Nokia or Samsung would have launched their own stores without at least talking to the major network operator groups (their biggest customers) first.
      The point, at least with Nokia’s Ovi, is that operator billing will be an option and the network can potentially get their slice of the pie without any investment in finding an creating the content.

    4. SamII says:

      Operators had the chance to offer a fair business enviroment but they failed.
      They were never paid based on sucess. Operators are paid by the big publishers to kick out the small ones and market the same stupid games again and again. Now they face the duopoly or perhaps the triopoloy as Namco mentioned it at Pocketgamer.
      They are killing themself cause the consumer is chosing which games they want to download and if they dont find it at the operator deck they will get it offportal or anywhere.
      So the stupidness and short thinking of some specific operators are pushing developers and publishers to other business models.
      Good luck. I am happy not to earn my money in that crazy market anymore but its very funny to see how things have changed.
      I really hope that operators are waking up before they realized what they have done to the industry!
      It has a reason why publishers like Vivendi or THQ are leaving the market.
      Its good to see Operators see some competition. But in my opinion they lost the fight before it get started cause they dont have soldiers, they only have talkers.

    5. oneguy says:

      funnily nobody remembers Gameloft connect which was the first appstore for mobile content from a mobile content provider, not operator, nor manufacturer
      closed as soon as it was launched, maybe killed by “external” pressure 🙂

    6. Arjan Olsder says:

      Indeed, Gameloft connect was one of the early app stores for mobile games. From what I recall, the fact that people had to download and install software to run it was just too much as the site was much more accessible. Next to that, Gamelof Connect was of course a closed market.

    7. The issue here is that most people (90%) haven’t even downloaded a game, so these app stores are selling to a tiny minority of enthusiasts like ourselves.
      The real task is getting “normal” people socialized into wanting content in the first place.
      Apple is running major national television ad campaigns (in the US) promoting mobile games. I don’t forsee Nokia or the rest pulling that off.
      http://mplayit.com

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    Arjan Olsder is the Vice President of Pixalon Studios. Opinions expressed on this publication do not have to represent those of Pixalon Studios.

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