Today we announced that NewsGator Inbox for Outlook, FeedDemon, NetNewsWire, NewsGator Go! for Blackberry, Windows Mobile and iPhone, and NewsGator Online are now available for free. That’s right, the license costs you zero, zip, nada.
But that’s not all, we have also released new versions of FeedDemon, NetNewsWire, and Go! mobile apps, and a public beta for Inbox 3.0. We are continuing to invest in these products and where we are taking them is a function of expanding their market reach.
I’ve been a NetNewsWire user for years (I was almost giddy the first time Brent Simmons sent me an email), like many I believe that this is without question the leading desktop RSS client application for the Mac. Windows users feel the same way about FeedDemon, it sets the high water mark for what an RSS application should deliver. NewsGator Online was one of the first web-based readers and it has a tremendously loyal customer base, Inbox defined the category for Outlook feed plugins and our Go! mobile apps are built for power users.
You should rest assured that this is not a move to take an end-of-life product line and get some additional mileage out of it, we will continue to invest in these applications and we will continue to lead the market.
We could have thrown a lot of money at marketing our client applications, signed up a bunch of distribution deals, and possibly done some kind of embedded OEM deal, but in the end the most expedient path to expanding the reach of these applications is removing the one barrier that exists that prevents people from downloading or signing up for them – economics. In effect, giving up the license revenue that we generate with these products is a form of marketing expense.
So if we are generating zero dollars of revenue from the client applications that we used to sell, well what is our business? Today we generate the bulk of our revenue from enterprise software, which is predominately server products but also includes these client applications (we call them “endpoints”). The fact remains that we actually generate a significant number of enterprise leads from people who are using our client apps and then realize they would benefit from enterprise management products. By that logic, more client applications in use is more enterprise goodness for us.
Okay, so we get all these client products out in the market, generate lots of enterprise software business, are loved by millions… surely that cannot be what this is all about? It isn’t.
The RSS market is maturing beyond supporting multiple feed definitions and doing extras like handling attachments. The three pane reader style is well established and features like setting read states and clipping and sharing have incremental value. Our users simply don’t say they need more content, they say that they want better content and we have been responding with an expanding portfolio of “attention” enhancements.
Better content means feed discovery based on preferences and behaviors, network search and relevance filtering, in effect achieving community-based collaboration and filtering on top of what the system can do off keywords and word association. You will be hearing more about this in the months ahead, we have a slew of partnerships and product updates in the works that will deliver best in class features to help you find feeds that are map to your interest areas, and individual content items that are relevant to the posts you are clipping and sharing.
Good relevance features depend on good behavioral data, in other words we will benefit from the surge of new users on our client applications in that we get a lot of data about subscription patterns and feed reading habits. We collect the subscription and behavioral data and anonymize it, then use it to improve the quality of our search results and relevance features in much the same way that search engines use search results to improve future searches.
The new features we are building into our client applications and in our syndication services business (widgets) will take advantage of the behavioral data in a big way. Our partners who are using our APIs to access our content network will also have access to this data and our widget customers will be able to plug in network search for additional relevance features.
This is an exciting day for NewsGator and for me personally. When I joined the company I was motivated by the belief that the company had a clear vision for where RSS in the enterprise and consumer markets was going, this move not only highlights that vision but puts our money where our mouth is.
Here’s a FAQ that includes information not in the press release.