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In the freemium business model, business tiers start with a "free" tier. Freemium, a portmanteau of the words "free" and "premium", is a pricing strategy by which a basic product or service is provided free of charge, but money (a premium) is charged for additional features, services, or virtual (online) or physical (offline) goods that expand the functionality of the free version of the software.
Some freeware products are released alongside paid versions that either have more features or less restrictive licensing terms. This approach is known as freemium ("free" + "premium"), since the "free" version is intended as a promotion for the premium version. [17] The two often share a code base, using a compiler flag to determine which is ...
Free-to-play (F2P) refers to video games which give players access to a significant portion of their content without paying. There are several kinds of free-to-play games, but the most common is based on the freemium software model.
For example, a fully functional feature-limited version may be given away for free, with advanced features disabled until a license fee is paid. The word freemium combines the two aspects of the business model: "free" and "premium". [5] It has become a popular model especially in the antivirus industry.
Free-to-play's model is sometimes derisively referred to as free-to-start due to not being entirely free. [1] Free-to-play games have also been widely criticized as "pay-to-win"—that is, that players can generally pay to obtain competitive or power advantages over other players. There are several kinds of free-to-play business models.
This page was last edited on 9 September 2023, at 06:55 (UTC).; Text is available under the Creative Commons Attribution-ShareAlike 4.0 License; additional terms may apply.
A common variation of the model in online games and on websites is the freemium model, in which the first tier of content is free. Still, access to premium features (for example, game power-ups or article archives) is limited to paying subscribers. [4] In addition to the freemium model, other subscription pricing variations are gaining traction.
Dropbox uses a freemium business model, where users are offered a free account with a set storage size, with paid subscriptions available that offer more capacity and additional features. [79] Accordingly, Dropbox's revenue is a product of how many users they can convert to their paid services. [80]