iPhone Business Models

The business model for small independent developers hoping to self-publish is clear; think of a great idea, build it, test it and submit it to the AppStore. However, what if you’re a distributor or a rights holder looking to publish applications or games, how do you take advantage of the opportunities that the iPhone offers?

A great starting point is making sure that the legals between your organisation and the developer are clear. This isn’t just about having the best lawyers, it’s also about having the necessary technical expertise to work through some of the finer details of your title.

If you’re providing an advance against royalties, where do the refund liabilities lie? What happens if you’ve paid out 80% of your development budget and the application is refused by the AppStore admissions department? Do you publish the application, does the developer publish it or do you submit as a joint venture? Does it all sound like too much hassle and you just fancy using a freelancer on a buy-out… but then what happens on future updates?

These are just some of the questions I’ve been working through in a report for a distributor looking to translate some of their properties to the iPhone. Some of the questions being raised are similar to those we noticed at the start of the iDVD era, and it’s fascinating to see how business and legal models evolve around an emerging platform.