I might be one of many who did not spend money on software for several years, but when I got an iPhone this changed completely. Recently I discovered, so far I spend about 150€ ( = 200 $) on iPhone apps.

That is a lot of money. But it is a little price compared to the thousands of hours of fun and productivity I got out of those apps.

I asked myself; Why am I willing to spend money on apps, but not on Software?

Is it because Apps are inherently better?
No they are not.

Is it because it is harder to steal software for the iPhone?
No that would more be a challenge for me than a barrier.

Is it because apps are ridiculously cheap, but deliver extremely much value?
Yup, that is it (for me at least).

If I buy an iPhone game for less than 1$ and this game entertains me for 10 hours, I consider that an amazing deal.
0.1 $/h = 0.1 $ for 1 hour of fun

If I would buy a beer in a bar, I would have entertainment and fun for 20 min for 4 times the price.
12 $/h = 12 $ for 3 beers to have 1 hour of fun

If I was to rent a movie, I would have 2 hours of entertainment for 2 times the price
1 $/h = 1 $ for 1 hour of fun watching a movie

I discovered I am not willing to spend more than 0.5 $ for one hour of fun.

For productivity that rate is somewhere around 2$ for 1 hour of enchanted productivity.

For education my rate is about 0.01 $ of an hour of education.

I guess I am not alone with my preferences. Fun time got extremely cheap and education is free if you have an internet connection. Productivity is what translates into increased income, so I am willing to spend much more on that. It is an investment.

If I was to buy a game for a PC it would be 60$ for 10 to 15 hours of fun, ridiculously expensive.

So it is very clear to me why Software companies and the Entertainment industry has a piracy problem: They are priced to high.

If they would lower their price to a 1/10 they could sell 20 times more software, TV-shows, music and so on.

To put it into Economical terms: The price elasticity of software overall is extremely elastic: Lower the price, sell much more. Increase the price, see your revenues plummet.

iPhone apps showed me the real value of fun, 3.0 out of 5 based on 1 rating