This is not the first app launched by Voddler, in May 2010 it debuted an app for Android OS handsets which offered film trailers only. With the iOS app Voddler has now improved its mobile offering with full-length ad-supported movies. However, Voddler's transactional offering, which features heavily on the company's website does not make it into the app. IHS Screen Digest understands that part of the reason for this is to avoid paying the 30 per cent the App store takes from all in-app purchases which use its billing system, which would have affected Voddler's margins and made running a transactional service prohibitive over the long term. It is interesting that Voddler believes this to be the case given that, even if they do fall into the set of companies required to use Apple's billing system (which is unclear ar present), the Cupertino company would only require that its system be used in tandem with Voddler's own. This will not be a factor should Voddler decide to expand full-length movies to Android and Symbian platforms where it can rely purely on its own billing system.

At launch the amount of advertising inventory on the Voddler iOS app will be lighter than on the web version of the service both in terms of number of ads and ad-length . Typically ad sales are handled in-house and sold separately in each territory where the service operates, apart from Finland where Voddler has partnered with a local ad-sales partner.

The vast majority of current Voddler users are in Sweden, where high in-stream advertising rates have helped to develop a healthy ad-funded online TV market. This stands in marked contrast to a region like Norway where the major commercial broadcasters (which in larger regions generally kickstart premium in-stream CPMs) tend to favour subscription models for their online video services as a result. Consequently turning the ad-funded mobile app into a major business outside Voddler's home market may prove to be challenging over the longer term.

Although the Voddler app is freely available in the Apple App store in Finland, registering on the Voddler service is still on an 'invite only' basis, which will no doubt limit the uptake of the app there. In other regions, the small selection of deep catalogue local and studio titles on offer is likely to prove a limiting factor, in the near term. The real potential for the app will only become apparent if and when Voddler can offer a comparable ad-supported offer to that of its web service.