Emerging Online Business Models incl Apple Subscription

Apple's Subscription Model
Apple's Subscription Model | Source

Every business will have a business plan guiding them towards a target and increased profits, but these need to change over time.  Online marketeers will know only too well that things can change overnight with, for example, Google's recent change in its search engine.

Many article websites allowed their users to submit articles which were heavily optimised to attract search engines in exchange for a share of the revenue from Adsense.  However, some sites allowed poor quality articles to be published leading to a backlash from Google.  This has resulted in some sites seeing up to 90% less traffic being drawn to their sites almost overnight, severely affecting their business models.  All business owners, especially those doing most of their business online, need to be aware of changes occurring and look ahead to cushion any external factors that can impact them.

Online business needs to have a well balanced plan across a range of media to be able to prosper.  Until recently it was possible to do all online business just by having a decent website that ranked well on the search engines.  Now, however, business needs to be looking forward and integrating their normal business into the social-networking phenomenon.  As well as having a decent site accessed by the main search engines, business needs to be looking at integrating sites such as Facebook into their model.  Many businesses have now set up Facebook fan pages giving them instant access to their followers, and organising advertising campaigns solely on social networks.

Apple has recently changed their business model adding to confusion amongst some businesses.  Many App developers and existing companies have built up a sizeable revenue from using the Apple App Store. Even with Apple charging 30% commission, there have been enormous profits to be made in a market created solely on one manufacturers hardware.  Apple has now changed the rules to apps using the subscription method, for example, daily newspapers.  Apps requiring a subscription must now be available through the Apple App Store, and not be made available cheaper elsewhere.

The advantages for Apple are obvious with the new subscription model, the best value for their end user will always be available from within the App and adding to Apple's profits by more revenue going through their system.  App developers may suffer in the short term by stopping some of this traffic going via their own sites and paying more commission. 

Business owners can keep in touch with developments easily by subscribing to sites and staying informed.  Information is key to any business and having the ability to change quickly to new situations.


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