Saturday's Assignment for E-business Class

What is a freemium ?

Freemium is a business model that works by offering basic services for free, while charging a premium for advanced or special features.

One Example of a freemium: Apps for smartphone: Paris Traffic

There is a very good application in the App store of Apple, it is called : Paris Traffic. Thanks to this apps we can have an overview of the road traffic in Paris. Which is very very usefull when you drive in the capital. Whereas, this fantastic apps is first sold for free. So you clic on it, donwload it on your Iphone and then open it to see if you're going to be on time for the dinner. It's magic it indicates you where to drive if you want to avoid traffic perturbation. You are just starting to be addicted. So you think of buying it to have new content such as the shortest trip for your home, you can save your favorite trip, you can regulate the update frequence of the traffic... In other word you have the feeling that you won't be a paris road expert without the Pro version... so you buy it 2,39 € That's a freemium !

According to a new report from Juniper Research:

Annual revenues from value-added services upsold through downloaded apps are expected to exceed US$14 billion by 2014, . The report found that storefronts are increasingly likely to offer the facility to upsell premium content from within the app itself (including the App Store). The result being that the freemium business model will become increasingly prevalent over the next five years.