NOT APPY – The FT strikes back

The FT took a bold step this week in creating their own application for smartphones and tablets and not using the itunes store to distribute and market it. The FT is the first major news publisher to launch an app of this type but it won’t be the last. With competition for presence and cut through amongst the 350,000 iphone apps, 150,000 Android aps and 30,000 Nokia ovi store apps fierce many of the stronger brands will rely on their own communication channels which their customers trust to market their app and keep all the revenue too.
The app.ft.com launch comes as Apple prepares to take 30% of revenue from subscriptions sold on iTunes and enforce a rule that subscribers must sign up through the iTunes App Store, rather than with publishers directly. So along with taking a fair amount of subscription revenue, Apple is looking to control the customer relationship, clearly looking to upsell other apps but why should the FT give that customer to Apple? I am sure that News Corporation are looking closely at these developments along with other global content providers like the BBC.
FT.com managing director Rob Grimshaw said the publisher was not happy with the new terms and is currently reviewing its position within the App Store. Whether they go for it or not one thing’s for certain the app is not only here to stay but is the future of marketing especially content marketing. Grimshaw said it was possible that within three years, a great bulk – possibly half of the FT’s audience – would be consuming its content via mobile devices.”There’s a revolution going on in consumption,” Grimshaw said. “We need to bring mobile right to the core of our operation.” No pun intended.