How freemium works
Anyone can sign up and watch the free part. Locked titles and features show an upgrade prompt. Viewers convert to paid when the free tier has shown them enough to want what is behind the lock.
What to keep free and what to charge for
- Free: first episodes, older seasons, a rotating selection, short clips
- Paid: new releases, full seasons, live events, exclusives
- Free with limits: lower video quality, ads, one device
- Paid features: ad-free viewing, downloads, more simultaneous streams, 4K
Measuring a freemium model
The key figure is the share of free users who become paying subscribers. It is often a few percent, so the free tier has to be cheap to serve or earn advertising of its own.
Watch how long conversion takes as well. If most upgrades happen in the first week, later free usage is a cost that only advertising can cover.
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