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@ MWC: Fox Mobile’s iPhone Strategy ‘In Review’; Wants More Clarity On App Store Rules

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imageFox Mobile is reviewing its iPhone application strategy, Fox Mobile CEO (formerly Jamba) Mauro Montanaro told us at MWC. The company joins a growing number of publishers that are increasingly unsure that the cost of developing an iPhone application can always be recouped. “It all depends on the application, of course,” says Montanaro, “and whether they are paid or free.” But he also notes that the “discoverability” of iPhone apps is becoming a bigger problem, and that some of the marketing tactics that Fox Mobile has used successfully on other handsets just don’t work on the iPhone.

“The question, as usual, is placement. Who determines [editorial placement]? Maybe someone out of Cupertino,” says Montanaro. With 15,000 apps now in the App Store and more flooding in, it’s a complaint that more people are airing as it gets increasingly tough for developers and publishers to claw themselves to the top of the list, where the serious sales start rolling in. Fox Mobile has experimented with a few applications, and has found that it’s only those apps that are heavily branded that have worked for them. In December, for example, Fox launched a “very successful” application timed with the release of its hit movie Marley and Me, a Tamagotchi-style application where users could adopt Marley and feed and play with him, which sold for $0.99.

More after the jump

The other issue is that even if a company wanted to increase the visibility of its iPhone apps, marketing them is difficult. “You can’t market on the iPhone. You can’t buy media on the iPhone,” says Montanaro. Moreover, the traditional ways of marketing mobile content using other channels don’t work here as the consumer always has to access App Store content by entering it directly from the iPhone. Says Montanaro, “It’s not possible to link from any other channel to the iPhone App Store. For example, using TV ads for Jamba/Jamster content, you can access the content directly via a shortcode, which is shown on the TV spot. This doesn’t work for iPhone apps.” Montanaro also points out that in terms of audience numbers, the iPhone still represents a very small slice of the market, especially for a company that supports some 2800 other handsets.

So what would have to change to make the iPhone more appealing to Fox? “Apple (NSDQ: AAPL) needs to clarify their commercial strategy. “They need to formalize commercial rules, and the rules for marketing and how to do it,” Montanaro says. “If we could do web to mobile sales push on the iPhone, that could work.”

Full coverage at our Mobile World Congress channel

Feb 17, 2009 10:52 AM ET

Posted In: Entertainment, Gadgets, Companies, Apple, iPhone, fox mobile, mauro montanaro

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