how do these free popular apps make money?

Discussion in 'iOS Apps' started by Che Castro, Jul 25, 2009.

  1. Che Castro macrumors 603

    Joined:
    May 21, 2009
    #1
    like shazam & Pandora

    I know they make money with ads but wouldn't they make more if it was like $0.99

    they cant be makin that much money with ads cant they?
     
  2. jmann macrumors 604

    jmann

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    #2
    Some free apps with ads (lite verisons) get quite good revenue, some on par with the paid versions. At least this is what I've heard on the Teh Interwebs™. :)
     
  3. thegoldenmackid macrumors 604

    thegoldenmackid

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    #3
    Pandora makes plenty of money off advertising.
     
  4. Che Castro thread starter macrumors 603

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    May 21, 2009
    #4
    how much you think they make?
     
  5. -aggie- macrumors P6

    -aggie-

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    Where bunnies are welcome.
    #5
    I'm sure they did an analysis that showed the benefits of making it free (loads of people dl it and they make all that ad revenue) versus the benefits of making $0.99 per dl (and less people dl it and they make less ad revenue).
     
  6. LoganT macrumors 68020

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    Jan 9, 2007
    #6
    Also keep in mind they make money on subscription as well. I pay 36 dollars a year to have it stream at 192 kbps and other stuff.
     
  7. Che Castro thread starter macrumors 603

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    May 21, 2009
    #7
    Pandora?

    What's the current Kbps for us free users?



    Aggie we cool
     
  8. Jeremy1026 macrumors 68020

    Jeremy1026

    Joined:
    Nov 3, 2007
    #8
    As a developer with both free (ad supported) apps and paid apps in the store. I can say that my free apps make about 10x the revenue as the paid apps. Its all about user base. Having 100,000 people using one of my free apps makes a lot more money then the 5,000 using the paid version of the same app.
     
  9. labman macrumors 604

    labman

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    Mich near Detroit
    #9
    Think of it this way

    how is lets say Google a Multimillion dollar company in fact 157 Billion as of 2009 cirrent stock shares are $446.72 US. wish I would have gotting in early on that one. :rolleyes:
     
  10. LoganT macrumors 68020

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    Jan 9, 2007
    #10
    Right now it's 128 KBPS or 64 KBPs, not sure. But it allows you to stream for 5 hours without touching it (free is 1 hour). Also as of now after the whole royalty board thing happened free users get 40 hours if they go over that they need to pay an additional 1 dollar to continue listening that month.

    Read this find out more http://blog.pandora.com/pandora/archives/2009/07/important_updat_1.html

    Also this is Pandora One: http://www.pandora.com/pandora_one
     
  11. harrystone macrumors newbie

    harrystone

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    Jul 8, 2009
  12. jecapaga macrumors 601

    jecapaga

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    Jul 1, 2007
    Location:
    Southern California
    #12
    Just curious here, I have both purchased and free apps. Of the free apps, I never, ever, ever venture towards any ads or anything except what the app is. How do you make money off creating an app that has built in ads in which nobody ever goes to the ads? Seems like a great racket.
     
  13. Jayden0606 macrumors 6502

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    Bergen County, NJ
    #13
    You don't, but users do click on them.
     
  14. dougdawson macrumors member

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    Aug 24, 2008
    Location:
    Austin, TX
    #14
    What in the name of God makes you think that any app is making money (i.e. approaching or above breaking even) right now?

    Doug
     
  15. Jeremy1026 macrumors 68020

    Jeremy1026

    Joined:
    Nov 3, 2007
    #15
    You may not ever come near the ads, but about 5000 people a day do. Its all about the numbers. Have a huge user base means that there is a much higher chance of users touching the ads.
     

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