Premium Member? Nope!

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.

Purchase/Subscription Service

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.

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Freemium Service

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.

Free Service

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.

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Disclaimer : I have no experience of this thing at all.  I just noticing it and wondering. Share your thoughts below.

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9 thoughts on “Premium Member? Nope!

  1. To be honest, i also do never have experience yet on that premium thing bcause most apps already been enough by using “free service”. The premium one is only for not-really-important thing and not worth. (Or it bcause i’m bad at tech LOL )
    Somehow, thing which made me curious is your question related with free-without-ads apps; “how they can earn the revenue? By selling our information?” If it is yes, of course they will “sacrifice” their reputation and lose their customer. I think they are really smart company and will make it as the last choice. :)
    Because im not really good at business and dont have any idea, i try to browse it and help to find the answer. Then actually many ways to get the revenue besides the ads. One of them is by their license that they sell to the mobile phone company. It will help the mobile phone sales because most customer need the apps more than the phone LOL. They also can do profit-sharing with mobile network provider. As we know basically apps you mention above requires us to have an internet package, is it? ✌

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    1. Losing reputation? I think no since they could only share non-specific-individual-data such as summary of our information. Selling information such as age, gender, location, etc as part of big data which needed by some institutions.

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      1. So you mean you dont mind if your data given to other without your permission?
        Mm this is what you mean if it is free then we actually might be their product?

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        1. Yes, exactly. But not meant to say I don’t mind it. It’s also being my concern but I consider it as risk that I have to “pay”.

          Moreover, I don’t think it’s used without our permission since we agree on Terms and condition when we signed up the service.

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          1. Is it? I read some terms and condition, privacy policy, or whatever it is, they did not mention anything which they can use our personal data. Even one of them said that will protect our data unless we share it by ourselves. Did i miss it? Hehe
            Mmm we also have such a regulation related with “perlindungan data konsumen” or “perlindungan kerahasiaan” etc, is it?

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