If you’re a kid, you probably have more time than money. That’s the force behind MP3 file trading, which is kind of a hassle and but is free (albeit illegal, of course!). As Steve Jobs famously pointed out, if you download music from peer-to-peer services, fixing the messy metadata as you go, the time it takes to avoid paying means you’re working for less than minimum wage. Nevertheless, that works if you you’re time-rich and money-poor. Free is the right price for you. But as you get older, the equation reverses and $0.99 here and there no longer seems like a big deal. You migrate into a paying customer, the premium user in the freemium equation.
Chris Anderson in b-sides