Subject category:
Marketing
Published by:
Harvard Business Publishing
Version: 28 November 2014
Length: 10 pages
Data source: Published sources
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Abstract
This is a Spanish version. Online storage company Dropbox provided remote-storage over the internet of any type of computer file, along with file sharing, synchronization and backup. Using a freemium pricing strategy whereby a basic service was free-of-charge and a premium service was paid, Dropbox grew into a business with 200 million users. But only an estimated 1.6 to 4.0% of its users provided any revenue to the company. This case examines how Dropbox used freemium pricing to facilitate product adoption and user referrals. A survey is provided of the cloud-storage industry, including an overview of the largest players and their pricing/service models. Further, various freemium-based companies across industries are compared, including user conversion rates and revenue profiles.
Location:
Industry:
Size:
USD50-500 million; Small
Other setting(s):
2013
About
Abstract
This is a Spanish version. Online storage company Dropbox provided remote-storage over the internet of any type of computer file, along with file sharing, synchronization and backup. Using a freemium pricing strategy whereby a basic service was free-of-charge and a premium service was paid, Dropbox grew into a business with 200 million users. But only an estimated 1.6 to 4.0% of its users provided any revenue to the company. This case examines how Dropbox used freemium pricing to facilitate product adoption and user referrals. A survey is provided of the cloud-storage industry, including an overview of the largest players and their pricing/service models. Further, various freemium-based companies across industries are compared, including user conversion rates and revenue profiles.
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Location:
Industry:
Size:
USD50-500 million; Small
Other setting(s):
2013