Apple's Policy Harms Subscription Providers Today, Apple Tomorrow

James McQuivey

 

Yesterday Apple announced its intention to tighten its hold on the payment for and the delivery of content through its successful iTunes platform. (I’ll leave off the I-told-you-so; oops, too late.) Apple will require that all content experiences that can be paid for in an Apple app must be purchasable inside the app, with Apple collecting its 30% fee. The app can no longer direct you to a browser or some other means for completing a transaction. Crucially, the in-app purchase offer must be extended at the same price as the same offer made elsewhere. Though the announcement of the subscription model was the triggering event, the policy extends to all paid content.

I do not believe this is where Apple will stop – I personally expect them to eventually deny the delivery of content paid for outside of the app without some kind of convenience charge. But my personal expectations are irrelevant here, because what Apple has done already is sufficient to make providers of content aggressively invest in alternative means to reach the market.

Subscription content services are the lifeblood of the content economy. A full 63% of the money consumers spend on content of all types comes through a renewable subscription (I’ll be publishing this data from a survey of 4,000 US online adults as part of a bigger analysis next month, hang tight). Most of that subscription revenue goes to pay-TV providers, but 17% of it goes to newspaper and magazine publishers, including their online or app content experiences.

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Unleashing The Location Potential In Your Mobile Commerce App

Peter Sheldon

The consumer appetite for smartphones shows no signs of slowing in 2011 and neither does the growth of the mobile channel at leading retailers. eBusiness leaders, who have been focused on replicating the online store experience on mobile are now turning their attention to new mobile innovations that will not only drive revenue growth for the mobile channel but create an immersive multichannel consumer experience that bridges the gap between online and in-store shopping.

Location-based commerce is one such innovation that is gaining interest among eBusiness leaders responsible for mobile strategy. Some retailers have experimented with third-party location-based services including foursquare and Shopkick to roll out location-aware mobile coupons. A few retailers have innovated further and are developing location services into their own mobile shopping apps beyond the basic "store finder" feature to create new ways to interact with shoppers via their smartphones. With my latest research, Location-Based Commerce: An Evolution In Mobile Shopping, we look at how consumers' mobile shopping habits, location technology available in newer generation smartphones, and mobile push notifications have matured sufficiently to empower a new set of location aware multichannel experiences. Retailers are using geo-fences defined in the vicinity of their brick-and-mortar stores to attract nearby consumers by sending relevant, timely, and location-aware messages to customers' phones.

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Tech Distribution Changes In An Empowered And Cloudy Industry – Discussed At Distree XXL

Peter O'Neill

I was invited to speak at the annual Distree XXL event in Monte Carlo last week. Now in its ninth year, Distree XXL gathers together top executives from tech industry vendors and distributors plus, in recent years, retailers from around EMEA for three days that include a trade show, presentation sessions, and meetings to discuss industry-specific channel topics. The 2011 event drew 950 delegates from 127 tech vendors and over 400 distributors. One of the event highlights for everybody is a process to request and set up formal one-on-one meetings between the various players, similar to our own one-on-one sessions at the Forrester Forums (only their software is better). A total of 5,000 such sessions were scheduled: some at tables in larger rooms around the trade show, many others in private meeting rooms elsewhere in the conference center.

The keynote presentation I gave was a clone of my recent Forrester Teleconference , where I use the word “changes” both as a noun and a verb: I describe what changes we see happening in the channel due to recent industry trends, and I propose how channel resellers and distributors must also change their business model for continued success. The most common comment I heard from attendees after I presented was, “It was good to hear somebody outside our business make these points. We’ve been discussing this for a while now, but not everybody is convinced this is happening or knows what to do about it.” I must say, I have never, ever collected so many business cards after a presentation where I must follow up by sending slides as well as two relevant reports (one on channel resellers and one on distributors) by my esteemed colleague Tim Harmon and myself.

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Survey: Are Operating And Acquisition Costs Higher Or Lower For Digital Channels?

Carrie Johnson

Are costs to run your eBusiness operations increasing or decreasing? Last year eBusiness professionals reported that on average they spent over $25 million annually to run their eBusiness channels. With the pace of innovation and investment in digital channels barreling forward, we expect that number to increase in 2011. The only way for us to know though is for you to help us. As part of our quarterly panel survey of eBusiness professionals, we have deployed a survey to get to the heart of the cost of running digital channels -- namely the Web and mobile -- and also to understand how the cost of customer acquisition varies by channel.  We'll publish the results in an upcoming research document. 

Because this will be the third year fielding this survey, we'll be able to provide year-over-year data when we publish the results to highlight the key areas in which eBusiness costs are rising and falling, with more emphasis on mobile in particular than before.

Please take our survey today. It should take about 15 minutes to complete, and you'll get to choose some free research as a thank you from us. As always we'll only publish aggregate results and will never list the names or companies of participants. It's Valentine's Day after all, please share some survey love!

Consumer Privacy And Marketers: Let's Talk Terms

Melissa Parrish

I recently read about a California ruling that prohibits most offline merchants from collecting ZIP codes for credit card transactions. According to the LA Times:

The high court determined that ZIP Codes were "personal identification information" that merchants can't demand from customers under a state consumer privacy law.”

One justice was more specific about the ruling, saying that the privacy law in question was intended to prohibit retailers from collecting and storing consumer information that wasn't necessary to the transaction.

The attorney who brought the law suit took the implications further saying that, “the decision would help protect consumers from credit card fraud and identity theft.”

So there are actually 2 issues here:

1)       The collection of non-essential data
AND
2)      Security problems that facilitate the use of the data for illegal purposes

The marketing and privacy discussion is full of complex issues being conflated in similar ways. Even terms like “consumer data” and “privacy” are so loaded that there are conversations between parties using the same words, but not talking about the same thing.

Most marketers are interested in data that gives them a better understanding of their audiences overall. Generally, we’re not talking about marketers collecting the kind of personal information on your credit report — complete address, bank accounts, etc. Most of you reading this post are well acquainted with this distinction, but are consumers? I suspect most aren’t.

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The Data Digest: How Democratization Of Technology Empowers Employees

Reineke Reitsma

The democratization of technology has arrived. New IT servicing models like cloud combined with improved user experiences make it easier for non-technical employees to download and install technology services. This phenomenon will only accelerate as these workers bring high expectations into the workplace from their experience with cloud-based services like Facebook and universal providers that allow access from any device.

Forrester's Forrsights Workforce Employee Survey, Q3 2010 shows that the consumerization of the enterprise is not always driven by a lack of collaboration of the IT department, only 8% of business technology users feel that their IT department is either clueless or a hinder. But the majority take things into their own control because they feel that IT is either too busy or they are restricted by corporate policies:

Cloud-based personal and professional services will liberate the individual from device and place, and set the bar higher for workplace IT. Today already 47% of business technology users at North American and European companies report using one or more website(s) to do parts of their jobs that are not sanctioned by their IT department. We expect this number to grow to close to 60% in 2011 as frustrated workers work around IT to self-provision technology.

The Online Marketing Suite Redux

Joe Stanhope

I am pleased to announce that my newest report, Revisiting the Online Marketing Suite, was published this week.

My colleague and Customer Intelligence Practice Leader at Forrester, Suresh Vittal, was the first to define the online marketing suite in 2007. At the time, the online marketing was highly aspirational; Suresh's work was a call to action for marketers and vendors. If we look back at the original report, the online marketing suite descriptive graphic (figure 2 in the report) is particularly prescient because it included a section for "future network partners" to build upon existing capabilities.  We have the benefit of hindsight, but this consideration would be critical as nascent channels such as social and mobile exploded in the ensuing years.

We are excited to reinstate this line of resarch. Unfortunately, in the time since the original report the online marketing suite has been slow to hit the tipping point. Many factors are responsible -- such as the economy, technical challenges, and marketers' struggles to cope with the constantly moving targets of channels and customer demands. Nevertheless, during this period we've seen unprecedented innovation in marketing, technology, and consumer sophistication. It felt like the timing is right to take a new look at the online marketing suite to factor in the marketing ecosystem as of 2011. If anything, these changes -- and challenges -- drive the need for the online marketing suite more than ever. It has never been more important to coordinate content, execution, and analytics to support customer interactions. 

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Calling European Interactive Design Agencies — Do You Want To Get Your Name In Front Of Forrester Clients?

Jonathan Browne

"Where to get help for interactive design projects in Europe?" That's the question I want to answer for customer experience professionals in my next research. To do that, I'm inviting all interactive design agencies in Europe to help me. Would you like to be included in a report that will help Forrester clients with their interactive agency selection process? If the answer is yes, please complete this 15-minute survey at:

https://deploy.ztelligence.com/start/index.jsp?PIN=15ZN9YWFM8K4N.

The survey is designed to gather data from European firms that have significant experience in designing and developing digital experiences (web, mobile, etc.). Survey questions cover interactive agency size, practice areas, industry expertise, locations, and a range of costs for typical engagements. If you know any agencies that should be included in my report, please forward the survey link to them or show them this blog post.

If you have questions, please send me an email: jbrowne at forrester dot com.

[16/Feb/2011]: Some people asked to see the questions before going through the survey online. That's a fair request, so I've uploaded a PDF of the survey to this page:

http://community.forrester.com/message/11355

[16/Feb/2011]: The deadline for this survey is Feb 28, 2011. The sooner we receive your submissions the better.

[28/Feb/2011]: I'm extending the deadline for this survey to Mar 7, 2011.

For The Love Of God, Will Everyone Please Stop Copying Apple?

Kerry Bodine

Yes, Apple is amazing. In no uncertain terms, the company has had a seismic impact on our society. Apple has changed everything from what we buy to how we work and awakened both corporate executives and the general public to the value of good design. Apple has raised our awareness of the value of simplicity (and the rejection of feature overload); the importance of paying attention to every little detail (down to the layout and typography on product manuals); and the seemingly unbelievable business domination that comes from examining not just isolated customer touchpoints but the entire customer experience ecosystem.

Not surprisingly, customer experience professionals at other companies want to follow Apple’s lead. And it’s only natural for one company to be influenced by another.

But in the case of Apple, I’ve been completely stunned over the years to see the degree of blatant copying that’s taken place. This has come, of course, from Apple’s direct competitors. Take, for example, the roughly 40 tablets that were announced at this year’s Consumer Electronics Show; the various Android-based phones, which look more like iPhone clones than not; and the app stores that have popped up to support every major mobile platform.

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Actual Interactive Marketer Predictions For 2011

Shar VanBoskirk

A few weeks ago, I had lunch in Chicago with several members of Forrester's Interactive Marketing Council. 

Chris Gorz, Hospira
Steve Furman
, Discover Financial Services
David Blanchard, Motorola
Ken Zinn,
Abbott Laboratories
Matt Eaves
, Cancer Treatment Centers of America
Rich Lesperance
, Walgreens

We had a terrific conversation about their plans and concerns for 2011.  You've no doubt seen Forrester's interactive marketing predictions for the upcoming year.  Well, here are the 2011 predictions from this group of interactive marketers:

  • Ad prices increase. Purse strings are loosening enough that new, organic budget is coming into online media.  This will increase competition for the same media, driving up CPCs and CPMs.
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