Mobstac Kills Freemium Model, Says Advertisement Revenues Not Enough

Bangalore based Mobstac, the 360 degree mobile publishing platform has announced that it will now kill freemium model and will start charging bloggers a minimum of $5 for the product usage.

“As part of the rollout of our integrated publishing product, we’re also announcing new pricing plans that include our new Touchsite product for tablets. The most significant change we’ve made is that we’re now dropping our free Basic plan entirely and replacing it with a $5/month plan. Our loyal readers will remember that we supported our free plan through an ad revenue sharing program. Unfortunately, that wasn’t enough to foot the bill of serving all that mobile traffic so we did what every startup must do: make a tough choice. We thank all our publishers for supporting us and helping improve our product leaps and bounds with their feedback and active involvement.

Our new pricing plans are the result of data we’ve gathered from new customers we’ve signed up, feedback from potential customers we’ve spoken to, and an analysis of how different publishers on our network have been using MobStac. We believe the new plans align better with how publishers want to use our product and have also updated our pricing accordingly.“ [mail]

Mobstac Pricing Plans

Mobstac Pricing Plans

Mobile/Widget Platforms

The key challenge for India based mobile/widget platforms is not just the lack of early adopters, but also lack of early-adopters-who-are-also-big-players in the country. For instance, how many active bloggers in India can really help Mobstac in monetizing the traffic (so that they can keep the service free)? Very few – I can bet that there are hardly 20 blogs which have more than even 200K pageviews/month for mobile site (and by the way, 200K pageviews means nothing!).

Having said that, Mobstac is looking at cracking the US market and killing freemium model probably works if they have a strong pipeline (especially in the enterprise segment), otherwise it just might backfire as the market is getting too competitive and freemium provides the friction-less entry.

Aside, Pluggd.in has been using Mobstac for the last few years  and very recently, we announced our touchsite for iPad (http://m.NextBigWhat.com) – so do give it a shot and share your feedback.

Video: The Mobtac Story