Digitization, digital distribution, and digital transformation have facilitated new and innovative ways of doing business, including the freemium and platform-based business models. Firms that adopt such novel business models often compete alongside firms operating more traditional business models. How do firms compete on the basis of their business model? Can business models be a source of competitive advantage and, if so, can such advantages be sustained over the long run? What factors contribute to the success of some business models over others? How are consumer perceptions of a firm’s offerings affected by its business model?