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Many digitized companies, whether streaming music services or web conferencing hosts, use the freemium pricing model whereby they offer a base-level product for free but

Many digitized companies, whether streaming music services or web conferencing hosts, use the freemium pricing model whereby they offer a base-level product for free but customers who wish to use the product's full features, such as no-ad listening or unlimited conferencing, pay a subscription. What is the cost basis for offering these limited services for free?

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