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Tuesday, December 27, 2011

#ALGORITHMS: "Freemiums Spreading to All Apps"

The business model by which software and services are offered free-of-charge for basic features, but require a payment for advanced features, is predicted to become the norm in 2012.


The use of freemiums--in which applications are free for basic use, but payments are required for advanced features--will intensify in 2012, making it entirely possible that by this time next year all relevant iOS applications will be free in most categories. In 2011, the number of freemium applications in the top 250 at the Apple App Store topped 88 percent, according to Allied Business Intelligence (ABI Research). The freemium business model uses in-application advertising and purchases for income, a trend that ABI Research predicts will extend to 100 percent of the top iOS applications by the end of 2012.
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