Twitter has reported a drop in revenue in the recently concluded quarter. As such, the company is seeking more ways to boost their revenue, including introducing a subscription model on the platform.
“We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls … we think is complementary,” said Twitter CEO and Founder, Jack Dorsey in a call to investors(via CNN)
The company’s recent earnings report has shown a sharp decline in advertising revenue, the company’s main profit driver. Twitter reported $562M in ad revenue, down by 23% in comparison to the same quarter a year ago. Drop-in revenue was linked to, among other things, the obvious – the COVID-19 pandemic – as well as “civil unrest.”
“We want to make sure any new line of revenue is complementary to our advertising business,” said Dorsey.
Rumors of Twitter introducing a subscription model first surfaced earlier this month after the company posted a job ad calling out for an individual who will help them in building a subscription platform codenamed “Gryphon.”
At the time the company provided a dodgy reply to CNN saying that it’s only a job posting, not a product announcement.
However, in the call to investors, Dorsey said the company will begin doing tests of the various approaches meant to complement their ad revenue this year. Dorsey notes the bar to charge users will be “really high” if they introduce that model.
Would you pay for a “premium” Twitter?