I have been enjoying Spotify for awhile in since beginning of April. I have not upgraded yet to Premium Subscription. Their free service is already good enough for me.
The most conventional business model is subscription. They require users to pay monthly. I know some example such as Netflix, Hooq, YouTube Red, Adobe Creative Cloud, and Microsoft Office. Usually they offer Trial version for limited time. This trial is useful for users to know whether their product is matched to their needs.
They offer some limited features to free users. If user want to access extra complete features instead of basic features, they have to pay extra for it. Some of them I know are WordPress, Spotify, and Path. Trial is usually offered to attract new customers.
Some of them even offer us their service for Free. Such as Facebook, Twitter, and Instagram.Then how do they earn revenue? Ads. They sell service to advertisers. As someone said, if it is free then we actually might be their product.
WhatsApp is free but has no ads at all. How do they earn? Do they sell our information?
Which is Best?
Not at all. It really depends on business strategy and public response of the service. Company might not have fixed business model to run the service along the time.
It may offer free service at first to attract new users. After while company would add some additional features which require users to pay. Then it might put levelling to the service which require users to pay even more extra.
Company might perform trial error its business model for a year or two years. Depends on the backup cost which planned for running it. Then they might revise or even change it.
Disclaimer : I have no experience of this thing at all. I just noticing it and wondering. Share your thoughts below.
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