Concept of ‘freemium’ case study


‘Freemium,’ this is just another example of how vast the digital space is today, this one for the audiophiles out there!

Having read the introductory chapters and the case study on Pandora the surprising internet radio, music streaming app and its several competitors like Spotify etc etc, I just wanted to share some thoughts I had on the subject!

  1. Concept of Freemium

It’s interesting to find out how the leading brands in the industry of online music providing services, music streaming did everything they could or rather are doing everything they can in order to sell more and make more bottom line dollar figure? the concept of freemium would probably fit into one of the business models to make that happen, and of course, there have been several of the brands which had evidently done very well and are managing even today very successfully the concept of freemium. Some brands worth mentioning would be the professional networking site Linkedin, online storage site Dropbox to name a few.

The concept of Freemium, when you offer some service online free for a while, post which you intend to enroll the individuals in your paid subscriptions, doesn’t necessarily work everytime as seen through the brand Ning, company dedicated to creating your own network online, at first started with the concept which it failed at, swiftly switching to the paid subscription part, at which it surprisingly succeeded later on. Several of the online music streaming services such as Pandora, Spotify, Apple music have practised the freemium concept to capture audiences across the market.

  1. Does it work for your brand?

Maybe the concept also needs to connect with your brand, the very nature of the offer you are making out there? Some questions certainly need to be looked into, what are the target audience out there, online looking for? what are they talking about in the online forums, communities? how much will the freemium concept connect with your target audience and will they value your offer not only while they have it but even after the trial period has expired? will they enrol in your program in a heartbeat? how can we make that brand really identify with the target audience? As a marketer, I would like to think that the brands wich have really stood out in this case study and concept of Freemium such as Pandora, Dropbox, Linkedin have certainly done their homework even before they got anything out there online, hence the clockwork success which followed, if I may say so, of course, nothing comes without minor setbacks if any at all in the process!



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