The latest company to catch the freemium model bug, is none other than Netflix. The company just released a “watch free” browser for all desktop and Android devices. So basically, anyone on a desktop, or Android phone can look up Netflix’s new unique URL and watch pretty much everything that is on Netflix. Now they did this because they basically think that most people are poor and can’t afford Netflix, except, apparently if you have an iPhone. A minor slap in the face, but whatever. Netflix, like many other companies has adopted a new model of “Free” where they can entice you with their core products and then SELL you their other names. This is opening a new world of consuming and letting buyers literally have the product, before you sell them everything. This is like the free samples at Costco on fucking crack.
Now Freemium has been around forever, in fact I just alluded to a simpler model of freemium before really freemium, which was samples. Now the mobile phone changed the samples model and birthed a new model called Freemium’s where you get an app and you get to use it, but after a while the consumer is enticed to actually start making purchases for the app’s other features and or products. Now this model got adopted in the recent years by the gaming industry, and fuck me running did it pop. Not the first but the most notable is Fortnite, which literally changed the landscape of gaming overnight. Letting the noobs play with the pro’s and vice versa. Having a major game that has a ton of production value, online play, and completely free is going to change some things. However Epic Games that produces Fortnite, was making a bet that once you get players into the eco-system you can start converting the free players into paying players. This just goes to show that we as a society are fucking dumber than rocks. But that’s beside the point.
So, this all begs the question. What’s next? It looks like the answer is streaming services like Hulu, Disney+, Peacock, etc. And this is because the streaming leader, Netflix, is doing it. If Netflix shows success and can pull this free URL off, I guarantee the other competitors will play along. BUT, what about after? What else could take on the freemium model, I dare say automobiles might be one, even houses could have a freemium model where mortgages kick in after a level of satisfaction. Look, this is all speculation, I am pulling this opinion, from where I pull all my opinions, my asshole. I am not sure this is where the Freemium train is going, but Netflix looks to be leaning into the strategy. Making BBNM think that the strategy could go well beyond, streaming, apps, or video games.
It’s easy to see by the Freemium model that if you have a product or service that will be desired even past a free cost, will ultimately win a long-term customer over. If you get them spending time with your shit, they will start paying you to spend that time. It’s simple math…. No… no it’s not Biz Bites. That was wrong. But the Freemium model does appear to be working and dare I say picking up steam. What is the next industry to get this strategy?
Anyway, that’s my take on it. Until next time.- GS
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