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Freemium: Converting Free Users to Paying Customers

Freemium: Converting Free Users to Paying Customers

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For years, music has operated on selling things — vinyl, cassettes, CDs and now downloads. Then came advertising on radio and elsewhere. But there’s a third way — freemium, a combination of free and premium offerings.

Examples of this in music are Spotify (free on browsers, premium on mobile) and Pandora (free with ads, premium without ads). But what if we expand the universe to include examples of freemium from other categories?

A report, “Making Freemium Add Up,” published Tuesday by Mark Mulligan of Midia Consulting, made such a comparison, putting Spotify, Deezer, Pandora and Slacker alongside Angry Birds, Hulu, Skype and others to glean further insight into the freemium model.

Read the full story: Billboard

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