Maples later explains, “Consumers get tech more quickly than technology companies get technology. They don’t see a difference between platforms. And they don't care how difficult it is for us to build something. If you don't provide it to them they will find it elsewhere.” So what is the benefit of publishers latching themselves onto this fast paced hype? Several industries are now implementing Freemium, yet it actually origninates from the IT world where it has been used by Internet service providers for years. A key example of a young company using this model is ‘Flat World knowledge’ (publishers of college textbooks) who are releasing their books for free online download as well as selling the extensive paper versions. (www.freemium.org 2013). This way they are reaching a large pool of potential customers by offering a free product which could otherwise be pricey and they gain a profit by selling their other products. “Freemium is the ultimate embodiment of that change because customers can use the product before buying it.” (Tungez, 2014).
Osprey have also recently entered the world of enhanced e-books, partnering up with Exact Editions for the development. A “try before you buy” approach has been introduced where basic versions of books such as First crusade can now be read for free and full versions can be downloaded via the app store for £4.99 per book. (Neilan, 2010). Daryl Rayner, managing director of Exact Editions, said: "Book publishers are viewing this model as a fantastic new way to promote the quality and richness of fully illustrated books. By offering a significant sliver of the content, completely accessible through a 'freemium' app, the iPhone is being used to its full potential." (Neilan, 2010).
Of course there are risks of publishers applying this model. Western readers are inundated everyday with super cheap self-published books and there is the threat existing publishing models will be undermined by driving the price down to free. (Nawotka, 2011). As well as this other models can be argued to target and engage much better. For example Ad-based models. There is also the worry that publishers in the West will not be able to secure e-book revenues without avoiding the piracy trap.
In conclusion, this digitisation of books presents and a great opportunity for publishers to move forward. “Plenty of companies, especially those with access to large amounts of customer data, are in prime positions to market and offer innovative propositions” (Galaria, 2013).
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Bibliography:
Froberg, P. (2014). What is freemium. [online] Freemium.org. Available at: http://www.freemium.org/what-is-freemium-2/ [Accessed 17 Oct. 2014].
Galaria, F. (2013). Publishing crisis? Time to create a Spotify for books. [online] the Guardian. Available at: http://www.theguardian.com/media-network/media-network-blog/2013/nov/13/publishing-crisis-spotify-books-music [Accessed 17 Oct. 2014].
Hall, F. (2013). The business of digital publishing. 1st ed. New York: Routledge, pp.108-133.
Jackson, J. (n.d.). Spotify Publishers Freemium Lessons. [online] Themediabriefing.com. Available at: http://www.themediabriefing.com/article/spotify-publishers-freemium-lessons [Accessed 17 Oct. 2014].
Nawotka, E. (2011). Will the Freemium Fiction Publishing Model Work in the West? [online] Publishing Perspectives. Available at: http://publishingperspectives.com/2011/11/freemium-fiction-publishing-model-work-in-the-west/ [Accessed 17 Oct. 2014].
Neilan, C. (2010). Osprey launches "freemium" app. [online] Thebookseller.com. Available at: http://www.thebookseller.com/news/osprey-launches-freemium-app [Accessed 17 Oct. 2014].
Tungez, T. (2014). The Common Characteristics Of Successful Freemium Companies. [Blog] http://tomtunguz.com. Available at: http://tomtunguz.com/when-to-go-freemium/ [Accessed 17 Oct. 2014].