What if a company created an iPhone app that gave you full, unlimited access to all your favorite TV series on the following conditions: You had to pay a one-time fee of $2 and you had to occasionally see a quick advertisement or two before each episode? Would you go for that?
If you’re like me you’d probably think that’s a pretty good deal, especially since I currently spend more per month on cable TV than I care to admit for shows that are filled with ads. An app that would provide on-demand access to the same content for a one-time fee of $2 would be appealing, and I’d put up with the ads because I already put up with the ones from my cable provider.
The model I just described is precisely the same model CNN is using for its new iPhone app called CNN Mobile — the first paid app from a news site. But, it’s drawing some serious criticism among consumers who don’t approve of a paid app that supports advertising.
The CNN app, which gives users unlimited access to premium CNN content including news articles and streaming video and offers a number of other customizable features, has run headlong into some well established consumer expectations. As Megan Berry points out in a recent Huffington Post article, “The main reason for the commotion is that CNN is violating the existing expectation that free apps can include ads, but paid apps should not.”
I visited the App Store to see what the backlash is about. There were a number of negative comments, but what surprised me most was the number of comments from people who said they enjoyed the app but decided to give it a low rating simply because of the ads.
So, I anted up and bought the app to see how invasive the advertising is. Admittedly, there were a few Lexus and Chevron ads, but no more intrusive that a typical banner ad online and, unlike some online ads, they did not delay my access to any of the content.
Otherwise, I found the app to be sleek, quick, thoughtfully designed and filled with a lot of great content. I especially enjoyed the streaming video and the ability to share news stories with friends was a nice touch. They also integrated the app with CNN’s iReport, which allows users to contribute to citizen journalism.
While CNN might have broken some unwritten rules among app users, the news organization is facing a broader challenge: The expectation among some consumers that after years of free online content, journalism — no matter how expensive to produce — should be free. One App Store review of CNN Mobile from Gabbagabbawill states, “This app should be free. If you want real news, install an RSS reader but not this app.”
But how will traditional media businesses remain profitable in the face of these expectations?
Perhaps as more news companies enter the ring with similar low-cost ad-supported apps, consumers will be more forgiving.
If not, premium news content is bound to suffer. Isn’t quality news worth a little extra, and maybe even a few ads as long as they’re not intrusive?
As Chris Brogan writes in a recent post, “Don’t ever feel embarrassed to charge for value. Never apologize that something costs money if you’ve determined the value of it.”
What are your thoughts?
Photo Credit: Robert Couse-Baker
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Good thinking on CNN’s part! Smartphones are on the way up, and time spent at home watching TV is on the down. Mobile news on the go — it’s a perfect fit. And I’m sure plenty of people will be willing to pay.