All Posts freemium

Published on July 6th, 2013 | by Sid


What is Freemium?

Freemium has been derived from two words, ‘Free’ and ‘Premium’. It is basically a business model where only the core product is given for free. Companies generate revenue by then selling premium products to some of the free users. Basically it means that the company provides you with a service or a product free of charge but they take money for stuff like advanced features or virtual prizes and money. Some apps offer this as in-app purchases while others release another full version of the app. Other companies do this by putting advertisements in their apps.

Freemium has been around since a long time, probably starting in the 1980s, in the form of a feature-limited ‘lite’ version. Most major companies, especially those that make apps for devices on platforms like iOS, Android, BlackBerry and Windows Phone use the freemium model in their apps. Electronic Arts, makers of the famous Need for Speed and Battlefield franchises are also trying to move towards creating freemium games. Gameloft is another company that has been foraying into the freemium market. Apps like Skype, Temple Run, Shazam and Angry Birds, some of the top mobile apps also follow the freemium model.

But the freemium model has come under heavy criticism by a lot of users. Some people call such apps “Pay2Win”, which means that people who pay more money have a greater tendency to win than players with more skill. There have even been a few lawsuits revolving around freemium games such as the one taken out by a group of parents against Apple in 2011.

Even though less than 5-10% of the consumers actually spend money on the app, companies still make money. What do you think about freemium? Do you think the freemium model will be the norm for all companies in the future? If you have any comments about the article or would just like to express your views, our comments section is always open. Until we meet again guys!

Tags: , , , , , , , , , , ,

About the Author

Well i'm just your regular guy-next-door, with a penchant for anything and everything related to tech.

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Back to Top ↑