Facebook has announced that it will start a beta app paid program, amidst its promotional efforts for its initial public offer.
Facebook has just hinted that it will start supporting apps that are paid on its platform. The apps will also be sold in the App Center which was also recently announced at the same statement. The paid apps model is a new feature to Facebook, because previously the social media giant supported freemium applications. Freemium applications are apps that are added for free by users, but users pay for in- applications like digital media, and virtual goods on the site. On the other hand, games’ purchases need developers to simply use credits, but then Facebook takes a 30% fee.
However, in the recently released statement Facebook said that it may also begin taking cuts from non- gaming apps which was not the case previously; but it was quick to add that the percentage collected from the applications would be revised. The beta program that is in the offing has also been said that it will include an easy payment feature which will allow people to pay a fixed fee.
The giant social media was however scant in its report, but it placed an emphasis on the fact that a large number of its transactions would still be in apps. The number of developers who will be in the program was not shared, but it is believed that a few entities like Netflix, Spotify, and Washington Post may be in the program especially if the model being used is subscription based.
Observers are of the opinion that in flat fee based applications; Facebook may be approached by a number of utilities and game developers. This is since, these are the form of apps that usually lead in earnings for Android devices and also iOS, although there are people who are still of the opinion that freemium applications have the ability to earn more.
The announcement by Facebook is expected to create a new form of apps, because Facebook has one of the largest reach and its promotional reach is yet to be fully realized. Keen observers; argue that the best way in which Facebook will use these apps is in streaming various events live. Sporting activities, and concerts are examples that come to mind, and these observations are supported by the fact that developers in the entertainment industry like Milyoni, have realized that people are willing to pay for such as an app easily. Nevertheless, following the announcement of the start of the beta program, Facebook opined that they still expected a large part of their revenue to come via the in- applications.
It was also found surprising that the social giant made this announcement when a large part of its focus is currently on its IPO, tentatively put on the May 17. As a matter of fact, in the filing that it made to the Securities and Exchange Commission, Facebook does not mention the beta program; or the risks, and potential that may be brought by the program.