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Ever since the turn of the century, we have seen a massive rise in freemium services. For the average user, these services are completely free like Google, YouTube, Facebook, Instagram, etc. Instead, these services make money through alternative modes of monetization such as running ads, collecting data, or even offering a paid premium tier. This model has been extremely successful at growing massive platforms with not just millions of users but billions of users. However, a lot of these platforms are starting to hit a breaking point at which they have reached market saturation. As such, they’re shifting their focus from user growth to user monetization. This has unfortunately led to these platforms slowly degrading in quality as they’ve been pummeled with ads, data collection, and other monetization efforts. This video explains the history of freemium services and the breaking point that the industry is currently undergoing.
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Timestamps:
0:00 - The State Of Freemium
2:05 - The Freemium Debut
6:01 - Freemium Rules
10:29 - The Race To Monetize
Resources:
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Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
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Ads Are Ruining Everything
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