Twitter’s second quarter earnings report displays a significant tank in ad revenue. In order to bridge the gap and raise revenue, they are contemplating different avenues for income growth. One of these potential solutions is a subscription-based structure.
As far as the culprits behind the revenue dip, Twitter is suggesting that the COVID-19 pandemic as well as the “civil unrest” that has swept the nation are possible suspects, as advertisers have temporarily withdrawn campaigns.
According to the report, Twitter’s revenue came in at $562 million USD, which is only about three-quarters of what it was last year.
CEO Jack Dorsey told investors it is likely that Twitter will test a subscription model to mitigate the losses.
“We want to make sure any new line of revenue is complementary to our advertising business,” said Dorsey. “We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls… we think is complementary.”
A few sources have speculated what a paid version of Twitter would like. Some believe it would be a user experience without ads, algorithms and trackers. However, Twitter has yet to release any specific details on the subscription-based model.
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