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SkyFire for iPad Launching Tonight For $4.99 [Update: It's Live!]

It's been a busy couple of weeks for the folks over at SkyFire.  They launched their Flash Video-friendly browser for the iPhone back in early November, only to pull it down almost immediately to ease the onslaught of users hammering their video transcoding server.

MobileCrunch Greg Kumparak

Context & Ripple Effects

SkyFire's iPad arrival extends a fast-moving arc: Apple approved its Flash-video-to-HTML5 converting browser for iOS in early November 2010, and it then pulled in nearly $1 million in its first App Store weekend — so much traffic that SkyFire had to yank the app almost immediately to relieve its transcoding servers. A 3.0 release for Android followed in late November, making tonight's $4.99 iPad launch the third platform in roughly seven weeks.

First-order effects

  • SkyFire adds a second paid iOS SKU at $4.99, directly extending the revenue stream that produced nearly $1 million in its first iPhone weekend.
  • The launch re-exposes SkyFire's core operational constraint from November: every iPad sale adds video traffic that its transcoding servers must absorb, and the earlier pull-from-sale shows what happens when they can't.

Second-order effects

  • Rival mobile browsers face pressure to match SkyFire's cross-platform cadence — iPhone, Android, and now iPad within two months sets a pace that browser makers without a server-side video pipeline must respond to with features of their own.
  • App Store pricing dynamics get another data point: a utility browser sustaining a $4.99 paid price against free alternatives validates premium one-time purchases for functionality Apple itself doesn't ship.

Third-order effects

  • If the pattern holds, server-side transcoding browsers position themselves as a bridge business whose value is explicitly tied to Flash video's remaining lifespan on mobile — the more the ecosystem shifts natively to HTML5, the less the middleman is worth.
  • Apple's willingness to approve a workaround for its own no-Flash policy establishes a template where third-party software, rather than Apple, absorbs the compatibility gap — a structure other excluded technologies may seek to replicate through the same proxy approach.

The trend: Mobile browsing is splitting into native HTML5 experiences and paid proxy-browser workarounds that rent users access to the Flash web Apple refuses to support.