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Don’t know if this qualifies as a parable. But it’s interesting, at the very least: An iPhone app developer has figured out how combat the burgeoning problem of piracy on Apple’s (AAPL) software platform — by embracing the pirates.<\/p>\n<\/p>\n
Don’t know if this qualifies as a parable. But it’s interesting, at the very least: An iPhone app developer has figured out how combat the burgeoning problem of piracy on Apple’s (AAPL) software platform — by embracing the pirates.<\/p>\n
Here’s the story of Tapulous<\/a>, relayed from the Midem music conference in Cannes by MocoNews’ Robert Andrews<\/a>:<\/p>\n Rhythm game Tap Tap Revenge saw 2.5 million downloads in its first two months – but a million of those were pirate downloads, Tapulous business development head Tim O\u2019Brien told delegates. Had the music labels tried this approach, would the industry be in any better shape today? I’m not sure. The labels do make periodic attempts try to steer “file-sharers” to legal purchases, either via marketing or threats.<\/p>\n But the big problem there is that people who are looking for free music are looking for free music, and there’s no equivalent “virtual good” that the labels can sell to enhance the music they’re not selling.<\/p>\n The labels have started branching out again into revenue streams beyond music sales — concerts, t-shirts, headphones<\/a>, etc — so in theory there could be an opportunity to do a variant: Hey we noticed you’re “sharing” a Madonna song. Would you like to buy a concert DVD<\/a>?<\/em> Etc. But if they’re doing it — and if its working — that’s news to me.<\/p>\n Buy This Item: [Click here to buy this item]<\/span><\/a><\/p>\n\n
\nBut that\u2019s okay. \u201cWe know who they are,\u201d O\u2019Brien said, adding that many of the pirates are now buying virtual goods and legal music downloads within the app.
\n\u201cWe\u2019ve started running ads to the pirate users more aggressively.\u00a0 Some of those users, because we sell virtual goods, have become high-volume users.\u201d Now Tapulous has 25 million unique users and has been profitable since June.<\/p>\n<\/blockquote>\n