After checking it out, and messing around some more with an updated ASIHTTPRequest library I’ve decided to use Amazon’s S3 storage service to host the media my new app will stream. This means I need to figure out how to incorporate the costs of bandwidth into the price of the app, as well as ensure that ongoing use of the app doesn’t bankrupt me.
Right now the plan is to charge an upfront fee to the user (the price of the app) which entitles the user to X hours of use. Once the hours run out the user won’t be able to stream anymore media from the S3 service. Then I’ll incorporate in-app purchase which will allow the user to purchase more listening time. I’m worried about the nature of this, I’m scared about the extra barrier this puts on the purchase decision.
Other options would be just to increase the overall price of the app, and then assume that some users will use the app a lot, and some will use it very little. This is a dangerous move I think, users could decide they love the app so much and use it constantly which would kill my profits of course. I also thought about adding ads to the app, but I don’t think that would generate much revenue due to the nature of the app. People will turn it on, tune into a stream and then lock the screen and put their iPhone in their pocket. They’re not going to stare at it and tap ads.
Even if I go with the purchased time approach, I’ve still got the pirates to worry about. Lots to think about with this issue that’s for sure.
