BizReport

RSS feed Get our RSS feed

News by Topic




BizReport : Internet : May 16, 2012


Freemium model works well for online movie, video industry

Over 4 out of 10 consumers have subscribed to a new product or service as a result of being offered a freebie, according to new research from iYogi Insights.

by Helen Leggatt

The findings were based on the responses of more than 2,000 iYogi customers and the data shows that a "freemium" offer is vital to the success and market penetration for new products and services.

The movie and video industry showed the most success using freemium techniques, with a 57% conversion rate from free to paid subscriptions. This is particularly true of first time users among which conversion rates from freemium promotions were highest:

- 68% of first time users subscribed to a video-streaming or movie service after a free trial period;

- Over half (54%) subscribed to productivity tools after a free trial;

- 51% opted to sign up for Cloud services after a free trial.

The research shows that people often aren't aware of the vale of new products and services until they actually try them.

"This new research reveals that a free introductory offer goes a long way in unlocking the value of a new product or service and leads to higher acceptance among potential buyers. In fact, pioneering services need to use a freemium if they want to achieve their business goals," said Vishal Dhar, co-founder and president of marketing at iYogi.






Tags: customer acquisition, free trial, Freemium, online conversion, online movies, video-streaming








Subscribe to BizReport



  • ExterNetworks

    ExterNetworks delivers cutting-edge solutions and quality services that enable clients to maximize performance. We facilitate their daily workload by designing and developing sophisticated and customized solutions that work especially for their organizations. At ExterNetworks, we firmly believe in harnessing the power of technology to augment efficiency and increase productivity and we pass this expertise on to our clients. We have strengthened over the years thanks to ongoing customer support and the continued dedication of our employees; at ExterNetworks, we are fully aware that our people are our greatest asset.

    http://www.externetworks.com/

  • bizreport

    Denne email kan ikke besvares. Hvis du ønsker at sige tak for postkortet, skal du skrive direkte til afsenderen, eller du kan sende et takkekort via http://www.123kort.dk/kateg...
    God fornøjelse på 123kort.dk!

    Med venlig hilsen
    www.123kort.dk <http: www.123kort.dk=""/>





http://www.bizreport.com/2012/05/freemium-model-works-well-for-online-movie-video-industry.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.