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Showing posts from November 26, 2014

A product with a free service or a service with a free product

In retail there is a battle for survival. Bricks and mortar stores are having huge problems to deal with the competition from E-commerce. Most players are rather creative in trying to capture the attention of potential customers. Last week I did buy a Sonos loudspeaker. These are rather pricey, so I had just put it on my wish list. By coincidence I saw that Sonos now had a special offer. This offer includes a full year free service from a streaming music service called Deezer. The regular price of this service is €9,99 per month and I now have free access for a year. That seems like a great deal for me. But who will benefit from this deal , is it Sonos or Deezer.? Probably Sonos has to pay a certain amount to Deezer to include this offer. After one year, I can cancel my subscription to Deezer and do a market scan for the right offer, This can be Deezer, but also one of their competitors like Spotify. Then Deezer runs the risk that they will loose me as a customer. For Sonos,