Whiteboarding/problem solving

What is your opinion on the 'freemium' subscription model, and how do you suggest addressing the issues with it in digital products similar to Spotify?

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Interview question asked to UX Designers interviewing at Visa, Medium, Squarespace and other companies. Original question asked: What is your opinion on the 'freemium' subscription model, and how do you suggest addressing the issues with it in digital products similar to Spotify?.