Freemium

business

A model offering both free (ad-supported) and premium paid streaming tiers.

Explanation

Freemium is a business model that combines a free (typically ad-supported) tier with paid premium tiers offering enhanced features like ad-free viewing, higher quality, and offline downloads. Crunchyroll, YouTube, and Peacock use freemium models. The goal is to convert free users to paying subscribers over time.

Related Terms

Free TierA no-cost streaming plan, typically...AVODAdvertising-based Video on Demand —...SVODSubscription Video on Demand —...Subscription FatigueConsumer exhaustion from managing and...

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Last updated: March 2026