App.net's freemium gamble

Subscription-based social network App.net is taking a leap of faith onto a freemium business model, but will the move actually help the social network win over more users?

Twitter's transformation into a media and advertising company was a "tragic mistake", says Silicon Valley entrepreneur Dalton Caldwell. His start-up App.net aims to become the advert-free platform for real-time social networks that Twitter should have been -- and today it launched a freemium business model, signalling the start of a make-or-break expansion phase.

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