The freemium model has witnessed a surge in popularity within the Over-the-top (OTT) industry in recent years. This model offers businesses and services a valuable opportunity to attract customers who might have otherwise been reluctant to try their products. By providing a limited version of the service for free, users can gain first-hand experience and assess the product’s value prior to committing to a subscription. This research article aims to comprehensively explore the freemium policy in OTT platforms, encompassing its advantages, disadvantages, and impact on user behavior and preferences. To evaluate the effectiveness of the freemium model, two analytical models have been proposed to examine the influence on subscriber growth across four major OTT platforms, namely Amazon Prime, Disney + , Hulu, and HBO. The findings from these models showcase promising results, unequivocally establishing the freemium business model as an effective strategy. Consequently, this research strongly advocates for the wider adoption of the freemium model among other OTT platforms, highlighting its potential to significantly augment customer acquisition and retention rates. By embracing the freemium approach, OTT platforms can position themselves for increased success in the dynamic and competitive digital landscape.

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Analyzing the Impact of Freemium Concept and Modeling Subscription Growth for OTT Platforms

  • Adarsh Anand,
  • Garima Babbar,
  • Niyati Aggrawal

摘要

The freemium model has witnessed a surge in popularity within the Over-the-top (OTT) industry in recent years. This model offers businesses and services a valuable opportunity to attract customers who might have otherwise been reluctant to try their products. By providing a limited version of the service for free, users can gain first-hand experience and assess the product’s value prior to committing to a subscription. This research article aims to comprehensively explore the freemium policy in OTT platforms, encompassing its advantages, disadvantages, and impact on user behavior and preferences. To evaluate the effectiveness of the freemium model, two analytical models have been proposed to examine the influence on subscriber growth across four major OTT platforms, namely Amazon Prime, Disney + , Hulu, and HBO. The findings from these models showcase promising results, unequivocally establishing the freemium business model as an effective strategy. Consequently, this research strongly advocates for the wider adoption of the freemium model among other OTT platforms, highlighting its potential to significantly augment customer acquisition and retention rates. By embracing the freemium approach, OTT platforms can position themselves for increased success in the dynamic and competitive digital landscape.