Freemium is a business model that offers a product or service for free, while charging for premium features or additional content. The term is a combination of "free" and "premium."
The freemium model is commonly used in mobile apps, online games, and software products. By offering a free version of the product, companies can attract a large user base and create brand loyalty. They can then generate revenue through advertising or by offering premium features for a fee.
For example, the popular music streaming service Spotify offers a free version of their product, which includes advertisements and limited functionality. Users can upgrade to a premium version to remove ads and access additional features, such as the ability to download songs for offline listening.