Twitter’s content creators were given a reason to get excited on Friday, and content creators thinking about joining Twitter were incentivized to join the platform.
What Happened: Twitter CEO Elon Musk announced that content creators will get a share of revenue for ads that appear in their reply threads.
This means Twitter users whose threads attract the most ads on the replies can potentially earn big.
What’s the catch?
"To be eligible, the account must be a subscriber to Twitter Blue Verified," Musk said.
Twitter's premium "Blue" service costs $8 per month.
While Musk did not elaborate on the details of his revenue-sharing plans for content creators, it could pave the way for Twitter to become a serious new revenue source, rivaling Alphabet's YouTube and Amazon's Twitch streaming platform.
Why It Matters: Musk’s new plan to share Twitter’s advertising revenue comes at a time when the company is seeing significant reduction in ad spend.
According to data issued by Standard Media Index, reported by Reuters, advertising spending on Twitter fell by 71% in December as leading advertisers reduced their investment on the social media network after the billionaire gained control.
Recently, Twitter has taken a number of steps to regain the trust of its advertisers, including offering certain free ads, easing the ban on political advertising and giving businesses more control over the placement of their advertisements.
Musk’s plan to share ad revenue with Twitter users could attract some of the most popular content creators to the micro-blogging platform.
Read next: Tesla Sees China Sales Rise 18% Sequentially In January — But Upbeat Numbers Don't Tell The Full Story
Photo via Shutterstock.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.