Pandora is an online music streaming service that uses a music genome algorithm to classify songs and create personalized radio stations for users. It launched in 2005 and pioneered a freemium business model, offering 10 hours of free listening per month. This risky approach worked well, as Pandora grew its user base and saw a 650% increase in profits from paying customers. However, other companies like Ning that tried freemium saw mixed results, and Ning ultimately abandoned the model in favor of premium services and advertising revenues. While freemium can drive growth, companies must balance user retention and managing abuse to remain profitable long-term.

1. Pandora
RADIO SERVICE ONLINE.

2. MailChimp went from 85.000 to 45.000 users E-mail volume
went from 200 millions a mount around 700 millions most
importantly , the number of paying customers increased over
150%, while profit increased over 650%, sounds great, but there
was also a price to pay.

3. Is based ina algorithm used to identify
genres of songs.
The result of the music genome.

4.  They have identified over 400 to
help to classify songs.
 Pandora is launched in 2015 , like a
music service.
 The most bigger chalenge was how
make this a bussines…

5. Pandra was the first model bussines was
give free 10 hours of free!!
THE COST OF HAVE PANDORA WAS 99 CENTS
FOR ONE MONTH.
THIS KIND OF SUPPOR WAS RISKY, BECOUSE
PANDORA DOSEN’T HAD A SERVER…

6.  In 2006 pandora added a buy botton, then the poeple can buy
the music.
 In 2008 pandora added an Iphone app to allow ussers sing up
from their smartphines.

7.  From MailChimp , freemium has been worth the Price it currently supports
more tan 900,000 subscribers world wide, sending 1.75 billion e-mails per
month However, Ning a Company that enables users to create their own
social network, tried freemium and came to a different conclusion.

8. Marc andreessen, co-author of mosaic, the first web browser, and
founder of netscape, launched ning in 2004. whit his assistance,
the company has raised $119 million in funding.
in may 2010, ning announced the impending end of the freemium
model. the company shed staff, going from 167 to 98, and is now
using 100% of it resources to capture premium users.

9.  Ning’s new business model counts on a variety of revenue streams:
premium services, Google ads, partnerships, and sponsorships. Partner
include persons publishing, which has committed to sponsors Ning´s
8,600 educations networks.

10.  It’s helpful if a large user network increases the perceived
value of the product
 Freemium may work when a company has good long-term
customer retention rates and the product produces more
value over time.

11. E-MAIL VOLUMEN WENT FROM 200 MILLION A MONTH TO
AROUND 700 MILLION.
THE NUMBER OF PAYING CUSTOMERS INCRESED OVER 150%

12.  The Company saw a significant increase in abuse of its system.
 Much of the abuse was “fuzzy spam”

13.  Between September 2009 and September 2010, the Company sent around
70,000 warnings.
 Suspended almost 9,000 accounts, and shut down about 1,900 users.