AfterDawn: Tech news

Facebook to launch App Center

Written by James Delahunty (Google+) @ 10 May 2012 13:28

Facebook to launch App Center Facebook sees apps as new stream of revenue.
The new App Center will launch within the next few weeks, providing Facebook users with a hub to find games and other apps. Developers can use the hub to provide free apps, or to sell them to Facebook's gigantic userbase.

Some concerns have been raised by investors about Facebook's long-term ability to sustain revenue, as the social network approaches an initial public offering that could value it at up to $96 billion. Growth of Facebook is being driven strongly by mobile usage, but the service only provides limited ads to mobile users.

The social networking giant has admitted that its number of daily users is fast outpacing the ads it can deliver. It does get revenue from fees on sales of goods within apps on the site, such as Farmville, but its primary source of revenue is advertising.

The new App Center will provide it with a new potential stream of revenue. Facebook users will need to use Facebook Credits to purchase apps, and the company will take a 30 percent cut of the revenue, according to spokeswoman Malorie Lucich.

It will include apps made for both PCs and for mobile devices. If a mobile app requires an installation on a device, Facebook said it will redirect users to Google's Play or Apple's App Store.

Tags: Facebook
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