More on the “Freemium” Business Model

We talked before about the concept of ‘Freemium’ here.

The New York Times Sunday Book Review offers a more in-depth analysis of ‘giving it all away’ in Virginia Postrel’s article:  “What you pay for $0.00.”

An excellent piece, that breaks it all down quite nicely, though absent again, I have to say is any mention of the effect of ‘fairly priced goods’ on the idea of selling cheap and easy to replicate products.

That’s the real issue. Digital content providers who overcharge create a demand for shared or pirated versions. As the article says, people will pay for what they love, but they know when someone’s taking advantage of them, yah?

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