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Posts tagged with Freemium

First FT email

What caused the daily digest email wars?

The Financial Times has launched a daily digest email called First FT.

I've noticed a retro trend for daily and weekly digest emails from publishers, with Quartz' version regularly cited by digital folk as the first thing they read in the morning.

Here's why email is enjoying a bit of a resurgence. I've included some examples of other publishers and their daily digests.

paid apps

The rise of freemium apps

The freemium model is in the ascendancy when it comes to apps.

Paid apps peaked in 2013 according to Jon Reynolds, CEO of SwiftKey. SwiftKey provides an app bringing smart prediction technology to your mobile keyboard and, indeed, has itself gone down the freemium route.

The app used to cost $4 and was consistently in the paid charts, now it's free to download, with in-app purchases available.

So, what are the reasons for and consequences of the rise of freemium apps?

1 comment

10 tips for B2B freemiums

Making money providing a free online service is still the sexiest option for many entrepreneurs and business owners, but generating revenue by charging users is increasingly sexy too.

As such, it's no surprise that in recent years many companies have sought the best of both worlds through the so-called 'freemium' model.


Why Twitter should charge its users

Twitter seems to be moving towards a ‘walled garden’ model, with hosted ads. But is there another way forward?

As recently reported here on Econsultancy, Twitter’s API is ‘evolving’. It’s already removed personal Twitter feeds from LinkedIn, and is threatening to revise the terms of its API so that third parties like Tweetbot and Tweetie can no longer replicate its core experience on their sites. 

Some commentators see this as a move towards a ‘walled garden’ model, like Facebook’s, where people must use Twitter’s own sites or apps to access the core experience.

Once there, they’ll be obliged to put up with whatever ads Twitter sees fit to host. The strategy gives Twitter full control over the format of advertising, and also the option to integrate more added-value stuff (games, e-commerce etc). 


Consumable goods dominate mobile games: report

While the business of virtual goods has probably been popularized most by social games such as Farmville, the mobile market for virtual goods has developed into a lucrative space for mobile games as well.

There's a good reason for this: charging for a mobile game itself has become increasingly difficult for many game developers, and virtual goods offer one of the best ways to implement a freemium model.

According to mobile ad network Flurry, as of June 2011, well over half (65%) of the revenue for top-grossing games in Apple's U.S. App Store was generated by freemium games. Just six months earlier, 61% of revenue was generated by paid games.


Spotify's new freemium: a little less 'free'

The internet has popularized the freemium model like no other channel, but building a successful business on this model can be quite a challenge.

One company that has succeeded: Spotify, the Swedish company that has become Europe's most popular music streaming service.


With freemium, MailChimp thrives where many others fail

For many internet startups, a freemium business model is an enticing solution to the problem of revenue generation: let the world taste what you provide at no cost, and once your most avid users are hooked, let them pay for what they've come to love.

It's simple in theory, but for many startups, building a viable business on the freemium model never becomes a reality.


Hulu's freemium model is missing the premium part

Rupert Murdoch's News Corp is frantically trying to monetize its digital properties. As part of that plan, popular video site Hulu recently added a premium version that costs $9.99 a month. For consumers looking for high quality video content online, it's an interesting model. But there's one catch.

According to new research from One Touch Intelligence, 88% of the content available on Hulu Plus is already available on Hulu for free.


Paid Content: Ning takes the free out of its freemium service

In alll the talk about paid content online, the word freemium comes up a lot. In theory, freemium allows consumers to get a taste of a product for free and then eventually converts them into paid customers once they get hooked and demand more services. But it's not always so easy.

In the case of social networking platform Ning, the freemium model was putting them out of business. Starting in June, Ning went all in on premium. The result? More people are paying to use Ning. But whether that's sustainable is another story.


Skype's dilemma — Can ubiquity breed a business model?

Online communications tool Skype has been wildly popular in its seven-year existence. And for good reason — it makes free internet and video calls feasible for people who want to communicate around the world. But the business model has one discernable flaw: if everyone in the world used Skype to call each other, the company would make no money.

Skype CEO Josh Silverman says his company's mission is to be “the fabric of real-time communication on the web." With over 23 million people Skyping in March, it seems the company is getting pretty close to achieving that goal. But getting users to pay for premium services could be a challenge. That's why the company is considering adding advertising to its interface. Will consumers take to ads after getting Skype for free all these years?


Guilting customers to pay is not a sustainable business model

The recession and weak ad market have led many well regarded businesses to ask their customers to reach into their pockets and pay a little (or more) money to their cause. But guilting users into opening their wallets is not a long term fix.

This week, Ars Technica CEO Ken Fisher conducted an experiment with ad blocking software, in efforts to get readers to start interacting with the ads on his site. My colleague Patricio Robles has written about the mixed reaction to Ars Technica's plea. But now it turns out that Fisher's efforts have helped the site's bottom line. 


Pandora's lesson: Your first business model doesn't have to be your last

The road to online music streaming is littered with the bodies of startups with interesting ways of sharing music. And internet radio darling Pandora was almost one of them — multiple times. This weekend, The New York Times documented the various ways that Pandora almost went out of business over the 10 years of its existence.

Pandora is on track to earn $100 million this year. That turn around is due to a number of issues. Some of them are extenuating circumstances — like recently reduced royalty fees for streaming songs. But Pandora has also been paying attention to changes in consumer behavior and digital payment structures. Their new revenue streams — including online ads, new streaming deals and a paid streaming model — prove that there's not always one way to bring in a dollar.