The following article was written in partnership with Dan Donahoo of Wired’s GeekDad.com and appears in the Cooney Center at Sesame Workshop’s iLearn Report, released 1/12/12.
Today’s mobile platforms enable developers to create more engaging and empowering content than ever before – groundbreaking games, toys, and tools for kids to play, learn, grow, and develop. In order to achieve the great potential of this market, however, it’s time for parents, educators, and developers to collectively reassess our pricing model: an expected price point of $.99 is not sustainable.
A “Top 50” Education app might have 100-200 downloads a day. Through regular updates, good social media support, and a strong fan base, a great app might hope to stay in the Top 50 for six months to a year. At $.99, that translates to $12K-$50K in revenue (revenue after 30% platform margin). With annual development/support costs ranging from $20K-$200K+, we’re quickly approaching a critical juncture in children’s media. We can (a) increase revenue, (b) consolidate, (c) reduce quality/depth/cost, or (d) supplement income through advertising and commercial branding.
If parents, educators, and developers truly value high-quality commercial-free educational content, then we must work together to identify and embrace a new pricing model that will sustain a diversity of developers to build innovative and creative content for our children. The simple answer would be to raise prices, but that’s shortsighted as upfront fees can inhibit parents from taking chances on original content and lead to more traditional licensing and advertising-driven markets like those of the toy and video game industries.












