Freemium

Freemium is 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.

Vangie Beal
Vangie Beal
Vangie Beal is a freelance business and technology writer covering Internet technologies and online business since the late '90s.

Top Articles

List of Windows Operating System Versions & History [In Order]

The Windows operating system (Windows OS) refers to a family of operating systems developed by Microsoft Corporation. We look at the history of Windows...

How to Create a Website Shortcut on Your Desktop

Website Shortcut on Your Desktop reviewed by Web Webster   This Webopedia guide will show you how to create a website shortcut on your desktop using...

What are the Five Generations of Computers? (1st to 5th)

Reviewed by Web Webster Each generation of computer has brought significant advances in speed and power to computing tasks. Learn about each of the...

Hotmail [Outlook] Email Accounts

Launched in 1996, Hotmail was one of the first public webmail services that could be accessed from any web browser. At its peak in...

Conti Ransomware

Conti ransomware first emerged in 2020. It uses a ransomware as a service...

Crypt888 Ransomware

Crypt888, also known as Mircop, is ransomware that encrypts files on desktops, downloads,...

AutoLocky Ransomware

AutoLocky is ransomware written in the popular AutoIt scripting language. It uses strong...