AvantGo Removes Limits on Custom Channels
Last month, AvantGo announced a new policy under which it limited the number of subscribers to custom channels to just eight people for each channel. It has now discarded this policy and announced a new one. AvantGo will still limit access to some custom channels but the company will look at each channel individually before making a decision on it. Channels that become popular by word of mouth will not be restricted. Channels that advertise for subscribers and offer products or services for sale will need to sign a contract with AvantGo.
However, AvantGo will still require an agreement for all channels with more than 1,000 subscribers. The owners of these channels will be notified when they reach the limit.
The company has removed restrictions it placed on some channels while the old policy was in force. If a user is still subscribed to to a previously blocked channel, the contents will show up on the next HotSync.
From AvantGo's perspective, commercial sites that don't have a contract with AvantGo are using AvantGo's servers and networks for their own commercial gain without paying for it.
Like most small, high-tech companies, AvantGo has been struggling to remain afloat. In its most recent quarter, the company had a pro forma net loss of $4.7 million, or $0.14 per share, on revenues of just $5.3 million. Therefore, the company can't afford any unnecessary expenses or to pass up any sources of revenue.
For commercial sites with between 1 and 100 subscribers, the annual fee is $1,000. For those sites with less than 500 subscribers, the fee is $4,000. Between 500 and 1000, AvantGo charges $6,000. All sites with more than 1,000 subscribers are supposed to work out an individual contract with AvantGo.
Thanks to wilco for the tip. -Ed
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