Uncategorized

: Tech CEO says Twitter needs to go ‘all in’ on subscriptions

: Tech CEO says Twitter needs to go ‘all in’ on subscriptions

2021-02-23 18:49:00
{widget1}

The days of Twitter as a completely free platform could end.

According to comments by CEO Jack Dorsey at the virtual Goldman Sachs Technology and Internet Conference on February 10, 2021, subscriptions and other forms of payment could potentially come to Twitter.

“The first thing we want to focus on is that economic boost for people who contribute to Twitter,” Dorsey, who is also the CEO of the digital payments company Square.
SQ,
-7.29%

said at the conference. “This can be done via a regular subscription, via content unlock, via tips. There is a lot of things and right now we are studying and prioritizing what those things look like. "

Twitter
TWTR,
+ 1.39%

has been a free member since its inception in 2006.

The company has already started making steps in the subscription world. In January, Twitter took over the newsletter service Revue, which allows creators to receive payments directly from their Twitter audience – Revue charges a 5% fee for paid newsletters.

Related: Disney + Finally Streams "The Muppet Show": Here's Why Some Scenes – And Entire Episodes – Are Missing

Some feel Twitter should make subscriptions an important part of their business plan, including Dan Burkhart, the CEO of Recurly, a company that provides corporate billing subscription services. Burkhart told MarketWatch he thinks Twitter is 'all-in' must go because of the unique structure of the company.

"The top votes on Twitter ultimately lead to orders of magnitude more visitor engagement than the constituency," Burkhart told MarketWatch. "When you have such a product with such a wide reach … with so many stakeholder groups creating the peaks and troughs that are far and wide, you have the opportunity to stratify your sources of income."

Burkhart cited positive response from investors from subscription companies such as Petco
IMPOSITION,
-3.32%

Snowflake
SNOW,
-3.11%

and lemonade
LMND,
-8.24%

as proof that there has never been a better time to build around subscriptions. All three companies went public in the past 12 months and subsequently booked strong openings.

One of the payment features that Twitter's Dorsey mentioned recently was tipping, something Burkhart agreed could work for the platform.

"There is definitely room for membership-based access to premium content, and tipping is a nice degree of freedom from that."

Recurly, which provides billing services for major subscription companies such as Twitch TV, Showtime, and BarkBox, also works with Twitter for a small portion of its ad products.

Last week, Twitter's stock hit a record high after 11 consecutive days of gains.

The social media giant posted sales of more than $ 1 billion on its latest revenue call, up 28% year over year. Twitter shares are up 50.5% in the past month, as has the S&P 500
SPX,
-0.58%

is up 1.53%.

.

{widget2}

Leave a Reply

Your email address will not be published. Required fields are marked *