VietNamNet Bridge – High risks, different business strategies, fear for inequality and poor apps all are the big problems that hinder content providers (CP) to reach a common voice to build an app store.
A question has been raised that while CPs do not join forces to build up a common app store to get stronger, instead of the current situation “every man for himself”.
The suggested idea really deserves careful study, especially when some app stores owned by mobile network operators, such as Mstore (Viettel) or Mspace (MobiFone) still cannot satisfy the demand, while users meet obstacles in making payment when using foreign app stores, and CPs cannot cooperate with mobile network operators because they cannot reach agreement on the profit sharing.
The idea that may not come true
Nguyen Manh Ha, General Director of VMG Company, said that there are hundreds of CPs, while each of them has its own business strategy and development model. Therefore, they do not think that building up a common app store, of which everyone could be a shareholder, is a good solution.
Ha said that CPs all have their apps available on mobile network operators’ stores, but they can earn several hundreds of thousands of dong to several million dong for every application. Therefore, CPs think that building app store cannot be sure of success and big benefits.
“Most CPs now remain small with weak capability, which makes it impossible to spend several millions of dollars to build an app store connecting with the big stores of the world,” Ha said.
VMG once tried to look for foreign partners who can assist to build app stores in Vietnam. The partners then asked to provide the list of apps and games, and when they realized that the content is still very poor (just several hundreds of apps), they said that the number of apps is not big enough for them to consider a cooperation project.
Besides, in order to build up app stores, CPs would have to find the answers to many other questions: how many apps CPs should post on stores to take back the investment capital? Where the apps would be sourced from? How many Vietnamese programmers are there who can be used for the works?
Besides, Vietnamese firms should anticipate that they would have to compete with foreign app stores. It may happen that the big foreign app stores release Vietnamese version for Vietnamese users, and then cooperate with network operators and banks to settle the current problems in making payment. If so, domestic investment deals would face very high risks.
Meanwhile, a representative of Galaxi Mobile said that since CPs are competing with each other stiffly, it would be very difficult to sit together to discuss the building up of a common app store.
Moreover, mobile network operators are all the partners of CPs, while the revenue that the cooperation with network operators can bring could be even bigger than the revenue from a common app store.
“It may happen that you spend money and efforts to build up and advertise for the common store, but clients would download the apps and games of other programmers. If so, you would feel regretted your efforts,” he said.
Ha thinks that in order to build up a common app store, there should be a leading enterprise which can lead the market.
“The enterprise would have to pioneer in making investment, accept risks, and everybody would follow it,” Ha said.
Source: Buu Dien