2. What is the Freemium Business Model
Stories initially offered
for free
When a Story gathers a
following, a premium
must be paid to read
the next instalment
3. Pros and cons of Freemium Publishing
PROS CONS
- Control is given to the reader – they - The reader may not want to pay for a
choose the story, genre, whether to service they have received for free
continue reading, whether to pay a
premium - Reading online literature could be a
phase, tomorrow there could be
- Allows first time authors to self publish something else
and to be recognised for their work, if
their work gathers a following then they - You need a lot of users, and a lot of
will receive payment for their work repeats users to make a profit
- Combats piracy as the story is a serial , - It takes a long time to make a profit
as the next chapter is always to follow
the story cannot be copied in its
entirety - Online literature could flood the
market with too many books, is there
already too much content out there?
4. Data from CNNIC and ONS
77% of the UK uses the internet, 32% of China uses the internet
66% of the people who use the internet in China access it by mobile telephone,
in the UK it 31%
Those who use the internet in China spend at least twenty hours a week on it
60% of adults in the UK use the internet on a daily basis.
42.3% of those who use the internet in China use it for Network Literature
Reading literature is not cited as a reason to use the internet in the UK statistic
however 51% utilise the internet to read or download online news, newspapers
or magazines
5. Other Company’s who utilise the Freemium Business
Model
Skype – Calls over the internet are free, but you pay for calls to
landlines
Flickr – Free photos up to a certain limit, people who upload a lot of
photos have to pay.
New York Times – casual readers, those reading twenty articles or less
per month have free access. Anyone who reads more than twenty
articles pays $15 to $35.
