Premium accounts and the Second Life business model

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Filed under: Business models, Economy, Opinion, Second Life, Virtual worlds

Much has been made of a statement recently by Linden Lab's new CEO, Mark Kingdon, that 'Premium subscriptions are immaterial in our overall business.' You see, in a sense that's pretty much spot-on. Unless a premium account owns more than 512 square metres of the Linden Estate (colloquially known as the Second Life Mainland), that account is either only very small revenue for the Lab, or actually represents an ongoing cost to them.

Linden Lab's CFO, John Zdanowski said, 'The revenue we generate from premium subscriptions is largely offset by the stipends we pay out to these account holders, so this decline doesn't have a material impact on our business.'

Either you're on an older premium account with a 500 Linden Dollar per week stipend grandfathered in, or you're on a newer premium account with 300/week. There's also a choice of plans, ranging from monthly to annual. Let's take a look at the relative values.

Continue reading Premium accounts and the Second Life business model

Premium accounts and the Second Life business model originally appeared on Massively on Fri, 14 Nov 2008 10:00:00 EST. Please see our terms for use of feeds.



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