Webopedia on Google+Webopedia on TwitterWebopedia on FacebookTech Bytes Blog
Main » TERM » F »

freemium

An amalgamation of the words "free" and "premium" that refers to services, software programs or mobile apps that are offered to users free of charge, but typically with limited functionality, advertiser support or additional features that are only available for a premium charge. The freemium software business model originated with shareware software, where users are able to download software and try it free of charge but only for a limited time or with a restricted feature-set.

The freemium software model has become extremely popular recently with the debut of freemium apps and in-app purchases in the Apple App Store following the release of iOS 3.0. Freemium mobile apps such as Temple Run and Dragonvale are available for download on iOS-powered devices like the iPad and iPhone without charge, but users typically have the option to pay for additional features like power-ups, virtual money, restricted levels, special characters, boosts, etc. via in-app purchases.

Freemium apps now gross more than paid apps in the Apple App Store, with estimates of more than 65 percent of all revenue generated in the App Store from in-app purchases for freemium apps.







TECH RESOURCES FROM OUR PARTNERS
LATEST ARTICLES
8 Agenda Apps to Help Students Stay Organized

Webopedia's student apps roundup will help you to better organize your class schedule and stay on top of assignments and homework. Read More »

List of Free Shorten URL Services

A URL shortener is a way to make a long Web address shorter. Try this list of free services. Read More »

Top 10 Tech Terms of 2015

The most popular Webopedia definitions of 2015. Read More »

STUDY GUIDES
The 7 Layers of the OSI Model

The Open System Interconnection (OSI) model defines a networking framework to implement protocols in seven layers. Use this handy guide to compare... Read More »

Computer Architecture Study Guide

Webopedia's computer architecture study guide is an introduction to system design basics. It describes parts of a computer system and their... Read More »

What Are Network Topologies?

Network Topology refers to layout of a network. How different nodes in a network are connected to each other and how they communicate is... Read More »