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0:00
Hello. My name is Mariusz Soltanifar and I am
a marketing lecturer at Hanze International Business School in The Netherlands.
Today I'm going to be talking about freemium subscription modeling
which can be used as a tool to ensure income streams for companies.
We will take the company Pocket as an example to
see a real life story of this income strategy.
0:26
Let us first take a look at the overview that I've prepared.
The outline of the case will be how companies can use subscription as
a paid service to generate income to offset costs of operation.
The nature of this case will be how companies can persuade users to pay for a service,
compared to using the free version that they offer.
The structure of the case is as following.
First, the topic of discussion is highlighted.
Secondly, a brief introduction of the company is presented.
Third, the impact of the subscription model versus a free service is highlighted.
Fourth, the impact of this challenge on Pocket company is described.
Finally, I will be discussing the impact on the other social platforms.
1:15
Let us have a look at the nature of the challenge first.
Social platforms are challenged by the concept that they offer
free versions of their product and they are struggling to generate revenues from that.
On one side they want users to start using
their products and extending their reach in the market,
however, a large user base without revenues is not sustainable.
Therefore the challenge is to generate sustainable income to maintain
operations while ensuring that barriers to use are not high to scare new users.
This challenge is relevant for every company who relies on
