Twitter is actively exploring additional ways to make money from its users, including by considering a subscription model. The move comes as the app suffers a sharp decline in its core advertising business. The CEO of the social media App revealed this during a meeting today.
“You will likely see some tests this year” of various approaches, “a really high bar for when we would ask consumers to pay for aspects of Twitter,” Earlier this month, rumors flared about a paid Twitter option after the company posted a job opening focused on building a subscription platform codenamed “Gryphon.” Twitter’s stock surged at the time, signaling investor appetite for the company to find new revenue streams.
Shares of the app rose 4% in early trading Thursday following the earnings results.
Like its rival social networks, Twitter has focused on offering a free service and making money by allowing brands to target ads to its millions of users.
“We want to make sure any new line of revenue is complementary to our advertising business,” “We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls … we think is complementary.”
Twitter’s growth plans are under close scrutiny as many advertisers pull back due to the pandemic. On Thursday, Twitter reported second-quarter ad revenues of $562 million, a 23% decrease compared to the same quarter a year ago. The company has also been hit by advertisers participating in an ad boycott of social media, linked to the nationwide racial justice protests.The social media app executives declined to say how much of an impact the boycott has had on the app’s business.
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