Conquering the app world with flair

The iPad seems to be revolutionizing the media world. That’s what one might think after reading some of the—at times euphoric—articles on the subject. But can you actually make money with it? And who stands to profit? Guest commentary by Josefa Haas, director of the Media Institute.

Apple is one of those companies that have great flair when it comes to developing seductive digital platforms. Technological innovation alone only inspires technicians. If a broad consumer base is to be reached, it is the experience as a whole that counts: from the announcement to the initial contact, the decision to buy, getting to know the product, fulfilled and unfulfilled wishes, right through to turning away because a new device opens up further possibilities. Apple is a master of this art.
As a user, the iPad fulfills many of my needs. It is a portable media library, bookshelf and magazine rack, audio and video library. The convergence of different forms of media can be experienced here like on hardly any other device. It accompanies me on my summer trips with the downloaded books, newspapers and podcasts. What I like best are applications that combine the conveniences of the analog media world with those of the digital world. Classic architectures such as sections, numbered pages, a neat layout and tabs for archive storage create clarity. I don't want to do without hyperlinks, videos or sharing options. An interesting example of this is the Coop-Zeitung app.
As a paying customer, the iPad makes my communicative life easy and annoying at the same time. Updating apps and emails with a quick tap quickly becomes part of my morning ritual. Once registered with iTunes, a tap of the finger is enough to fulfill all my wishes. The picture quality demands appropriate graphics and ultimately sophisticated content.
However, if you want to work with the iPad, you'll be taken back to the Stone Age time and time again: essentials have to be purchased separately either via various apps or accessories. Some things are still being developed. You can get used to the keyboard. Thanks to my small hands, I was able to type this text straight away, even though my dexterity was very much in demand.
The thought of all the information that Apple collects about my preferences, interests and contacts is unpleasant. Steve Jobs weaves a very tight net around his customers: anyone who has purchased one of his devices is obliged to play his game. Jobs is making the same mistakes that he accused Microsoft of: He exploits his market success to the limit.
Media producers are also at the mercy of Apple's rules of the game. Who can launch their app and how is apparently not simply a matter of negotiation for publishers. The points of contention are the subscription and individual sales forms. The following two questions take center stage: Who earns how much from app customers and who has access to their data?
Even early iPad partners such as Time Inc. have apparently not yet been able to find a satisfactory solution. As All Things Digital reports, Apple prevented the launch of a magazine that can be downloaded via iTunes, but the subscription is billed directly to the publisher. Where an agreement could be reached, such as between Apple and Amazon, the competition authority intervenes. Magazine apps can apparently be sold successfully: According to industry reports, Wired is said to have sold around 100,000 copies of its June issue via the iPad at a retail price of 4.99 dollars. There is already speculation that Steve Jobs wants to get more involved in the magazine business.
Apple lacks tact. The American economist Richard Reich recently reminded us that BP is not a person, but a bundle of contracts. This also applies to Apple, even if Steve Jobs likes to present himself as iGod. It is now up to all market partners and also the authorities to negotiate hard. Apple is already in no way inferior to Microsoft and Google in terms of arrogance of power. The competition is challenged to bring alternative offerings to the market.
Printed media is still an alternative to the iPad. Whenever I wanted to delve deeper into a text, I picked up a book or newspaper this summer. Whether this will be the case to the same extent next summer depends on the sensitivity with which all market players develop their offerings.

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