Twitter Inc TWTR is in the early stages of exploring a subscription-based model for the platform, CEO Jack Dorsey said in a Thursday call with investors.
What Happened: Twitter posted a 23% year-over-year revenue drop in the second-quarter report it released Thursday.
Twitter is in the “very, very early phases of exploring” other sources of revenue, including a paid subscription model, Dorsey said.
The CEO further hinted that various options will be tested this year that some users will see, but did not go into specifics.
Ad revenue accounts for most of Twitter's earnings, and it has dropped substantially — so the exploring of outside revenue models was welcome news to investors.
Why It’s Important: Would users be willing to pay for Twitter to post or to consume content?
Dorsey did say he would offer a “really high bar” if users did have to pay for certain features.
So far, other social media companies have not gone to subscription-based models, so Twitter could be a pioneer if it does so.
In recent weeks, Twitter has taken revenue hits from advertisers pulling ad spending, as well as boycotting the social media app.
Benzinga’s Take: Twitter did report 186 million daily active users Thursday
Even if the platform captured a small percentage of this user base with a subscription, it would translate to real money.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.