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BREAKING NEWS & VIEWS
Men’s Health First to Monetize iPhone 3.0  the first publishers to leverage the device’s new incremental billing system. The long-promised update to the iPhone’s OS was launched yesterday on Apple iTunes and immediately crashed the servers as millions of device users tried to download it at once. The updated feature set for the touch screen devices lets application developers create new monetization models for mobile content, and Rodale’s “Men’s Health iPhone Workout Series” is among the first downloadable programs to exploit the functionality. Users buy the basic mobile program for $1.99 but then can buy new routines incrementally from within the program. The illustrated workout instructions re-create familiar routines from MH’s many in-book and online training courses. Black-and-white images of staggeringly buff models walk users through the exercises and their correct form in a step-by-step format. The well-executed app organizes the workouts by goals (“bigger arms,” “15 minute fat burner,” etc.) or by body part. The app was designed to be taken to the gym or on the road. The routine uses an on-board timer to show the length of your workout so that it mimics a personal trainer. Users can log their sets and maintain an ongoing record of past performance. The application is remarkably deep in its own right, but it also incorporates what Apple is calling its “In-App Store,” which enables a user to purchase new content or subscriptions from within the application. In the MH implementation, users buy new workouts as “Expansion Packs” for 99 cents and $1.99. The feature worked as advertised for minonline. Clicking on one of the additional workouts prompts a confirmation request and then downloads the additional content directly into the application. The new billing system from Apple is bound to spark more experimentation by magazine brands. The platform lets publishers test freemium models, for instance, in which an initial application download may be free but will require paid upgrades for additional functionality and content. The revenue model for the App Store is also especially attractive to publishers. In the past, mobile carriers have demanded 50% or more of the revenue that paid applications generated off of their walled gardens of content. Apple is giving developers and publishers 70% of the gross revenue from their applications. Rodale is planning more iPhone/iPod Touch apps. If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com |
 Manager, Digital Media, NCC Media
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