History
Red Hat Linux was one of the first and most popular Linux distributions. This was largely because, while a paid-for supported version was available, a freely downloadable version was also available. Since the only difference between the paid-for option and the free option was support, a great number of people chose to use the free version.
Red Hat made the decision to split its Red Hat Linux product into two: Red Hat Enterprise Linux for customers who were willing to pay for it, and Fedora that was made available free of charge but gets updates for every release for approximately 13 months.
Fedora has its own beta cycle and has some issues fixed by contributors who include Red Hat staff. However, its quick and nonconservative release cycle means it might not be suitable for some users. Fedora is somewhat a test-bed for RedHat, allowing them to beta test their new features before they get included in Red Hat Enterprise Linux. Since the release of Fedora, Red Hat has no longer made binary versions of its commercial product available free-of-charge.
Read more about this topic: Red Hat Enterprise Linux Derivatives
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