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New business model alert: Lite is dead as freemium comes to iPhone

Apple has announced a change to its terms of service which paves the way for new business models on the iPhone.

Historically, virtual goods could only be purchased in paid apps. That led to a series of anomalies, in particular that developers had to follow an upgrade path of:

Lite version -> paid version -> virtual goods/add-ons

The change is likely to eliminate Lite versions. Developers can offer a single version with a clear upgrade path to new features or content. There are some limitations, though: no virtual currencies and no “rentals” – i.e. if a user downloads content, it can’t be time-limited.

I think we’ll see a lot of changes to the iPhone business models very quickly.

Head over to InsideSocialGames and TechCrunch for more details of the changes.

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View Comments

  1. Raul on October 16, 2009 @ 8:04 pm

    This is definitely cool, but it in no way eliminates a separate lite version as having only one version would require those that want to buy your game to not buy it first.

    [Reply]

  2. Raul on October 17, 2009 @ 4:04 am

    This is definitely cool, but it in no way eliminates a separate lite version as having only one version would require those that want to buy your game to not buy it first.

    [Reply]

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