The popular Angry Birds app for iPhone and Android has taken the world by storm in perhaps a way that nothing has since PacMan.  It is the most recognized game of this generation and it is the first breakout hit that is a mobile app meant for tiny touch screens without a physical controller.

One of the most interesting aspects of the game is the revenue model.   On Android, Angry Birds is given away free and derives its income from in-game advertising provided by Google’s Admob group.  The developers say that they should soon start making $1 million a month just from advertising against the Android app alone.  The popularity of the game shows no sign of slowing down with Angry Birds plush toys being hot items this holiday season.

How do they get $1 million in advertising impressions every month?

The developers keep releasing more and more levels to the story.   People who finish the game jump back in when new, free levels are launched.  There are seasonal “episodes” like  Halloween and Christmas levels being released every few weeks.  People continue to play.

Interestingly, the game has turned into more of an interactive TV series than a traditional game.  Instead of selling the game for a price, they are continuously selling an experience which keeps the users coming back.

Google provided an interview with the developers below, perhaps hoping to entice others into following that model.

[youtube=http://www.youtube.com/watch?v=DpLRQy5cNIc&w=600&h=375]

For game developers with a popular game, Google has developed an entirely new revenue model which may turn out to be the dominant way people get games in the future….just like TV. via Google