Carving out an iPhone image niche

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You can view images like these on the iPhone with new software developed by Alan Oppenheimer of Open Door Networks Inc. and Jim Teece of Project A .Bob Pennell

August 13, 2008

By Greg Stiles

Mail Tribune

The first data blip caught Alan Oppenheimer's attention, and a succession of reports from Japan proved even more intriguing for the Ashland software developer.

When the iPhone debuted in Japan last month, the founder of Open Door Networks had good reason to track consumer response.

Oppenheimer wanted to see how the Art Envi iPhone application, co-produced by Open Door Networks and fellow Ashland tech firm Project A, was faring at Apple's Japan online store.

"A week ago it was listed No. 5 and I thought that was cool," said Oppenheimer. "And then it went to No. 2 and I thought 'It'll never make it to No. 1.' "

But as of Tuesday, the application that enables iPhone users to look at art from museums and other Web sites was No. 1 in the Japanese market.

Working together under the name We-Envision.com, Project A and Open Door have produced a series of Envi applications that let iPhone users browse everything from comic book images to photographs from space.

Oppenheimer characterized Art Envi's soaring popularity as a "virtuous circle," something he described as the mirror opposite of a "vicious cycle."

"Once it gets to No. 5, people say I'd better check it out," he explained, "and then when it gets listed No. 2 more people look at it."

While the United States is on its second iPhone wave, the Japanese didn't get into the act until July 11. Oppenheimer estimated there could be as many as 20 iPhones in the U.S. for every one in Japan.

"The U.S. is by far our biggest market and we're doing fine, but the response is nothing like Japan," he said. "For some reason we struck a nerve."

The application downloads for 99 cents in the United States and 115 yen in Japan. Apple retains 30 percent for its services and developers retain 70 percent of the sales, the standard arrangement for all such deals with the company. iPhone users can search for artists, look at their work, zoom in on specific areas of the canvas or arrange slide shows. Other 99-cent programs let users browse sports photos, comic strips or photos of stars and galaxies. An application centered on national parks and monuments is due out within the next week.

The full-featured iEnvision is a $10 application that allows iPhone users to organize and view images from all over the Internet with a slide show interface. To see how it works, visit the Web site at: www.we-envision.com.

Oppenheimer said there are three kinds of applications available to users. The vast majority are free, and then there are almost-free ones designed to pique consumer interest. Flagship products come with multiple bells and whistles.

"A 99-cent product is essentially free from a lot of people's perspective," Oppenheimer says. "You see it, read a review and then commit 99 cents."

Considering the iPhone costs $200 and carries a $70 monthly user fee for unlimited data, that's an easy sell.

Ultimately, he says, We-Envision hopes to sell its iEnvision line of products to users who dabble with the bait and get hooked.

"The third kind is not an impulse buy," Oppenheimer says. "This is for the people who want the whole nine yards."

"iEnvision is selling pretty darn good for a $10 product," Oppenheimer says. "But you have to be sold on it first; that's why there is a 99-cent application. In the software industry you always want something for users to try before they buy."

Oppenheimer can't say how many copies of the application have been downloaded in Japan, or anywhere else for that matter.

"Apple gets really mad when you violate nondisclosure agreements," he admits.

But consider that in a typical month, Apple provides 60 million third-party application downloads. Half of those downloads are free and the other 30 million are sales. There are about 1,000 applications available, and they are downloaded an average of 60,000 times during the month. Free offerings are downloaded most often, but when you're No. 1 for any period of time the numbers aren't bad.

"We're competing mainly against games," Oppenheimer says. "So we're not No. 1 in total revenue. We've been No. 1 in downloads for three days, we could drop back tomorrow or stay there three weeks."

The joint effort occupies four Open Door employees and two from Project A. Open Door Networks has been cranking out software for Macintosh users since 1995, so Oppenheimer has a pretty clear sense for where the industry is headed.

"The iPhone wave is just going to grow," he says. "More people will want iPhones, and I don't think they can meet the demand a month later. It's just getting started. They will sell 10 million phones this year and maybe in five years 100 million. Look at how many iPods they sell a year now, 100 million. The iPhone has the same or bigger potential than Macintosh did 25 years ago."

Teece said the iEnvision series' success is spurring additional efforts.

"It is not trivial or easy to develop software for the iPhone and it took us months to develop the first application," said Teece, who has blogged about the process on his Web site (www.jimteece.com). "We look forward toward growing the joint venture over the next 12 months."

Reach reporter Greg Stiles at 776-4463 or e-mail business@mailtribune.com.

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