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Twitter CEO Jack Dorsey: Subscription Feature Would Have 'Really High Bar'

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Twitter CEO Jack Dorsey: Subscription Feature Would Have 'Really High Bar'

Twitter Inc (NYSE: 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.

 

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