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Chronicles

The story behind the story

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About the new Qik video service on the Sprint EVO 4G phone

Well, there're a number of rumors flying around that the 2-way Qik mobile video service will require a premium subscription.  We wanted to clarify what that really means.  Firstly, rest assured that the core Qik service that lets …

Qik Blog Bhaskar

Context & Ripple Effects

Qik had already pushed beyond an early feature-phone service into distribution deals, including preinstallation on Nokia phones. Its free live-streaming app was also available on the iPhone, making broad access central to its reach.

Sprint positioned two-way Qik video chat as part of the EVO 4G launch proposition. The pricing clarification addresses the distinction between Qik’s core service and the enhanced calling feature after reports of an added monthly charge.

First-order effects

  • EVO buyers can separate access to Qik’s core video service from the terms attached to two-way video chat, rather than treating every Qik feature as a paid add-on.
  • Qik and Sprint gain a clearer way to present video chat as a premium EVO feature while preserving a free entry point for the broader service.

Second-order effects

  • The distinction makes the added cost reported in coverage of EVO video-chat pricing a comparison point for rival handset and carrier bundles: premium calling features must justify their charge against free streaming.
  • A free core service can keep Qik’s addressable audience wider than the EVO while the paid tier tests whether real-time two-way calling merits separate monetization.

Third-order effects

  • Mobile video services are beginning to split distribution from monetization: preinstalled or free streaming builds reach, while higher-value communication features are candidates for carrier-linked tiers.
  • If carriers continue attaching premium video features to flagship phones, service makers will have to balance broad cross-device availability against revenue-sharing and feature differentiation in carrier bundles.

The trend: Mobile video is moving toward freemium packaging, with basic sharing used to build distribution and live two-way communication reserved for premium handset or carrier offers.