Twitter to Experiment with Subscriptions & New Models in 2021
Twitter Explores New Revenue Streams Beyond Advertising
According to a recent Bloomberg report, Twitter is actively investigating the implementation of subscription services and additional paid features as a means of bolstering its revenue, which currently relies heavily on advertising. The company is evaluating a variety of concepts.
Potential Paid Features Under Consideration
The report details that Twitter is considering options such as user tipping, premium consumer-level features – including profile personalization and an “undo send” functionality – and subscription access to its Tweetdeck application. Twitter has acknowledged it is researching and testing new revenue models, though specific details remain undisclosed.
The exploration of paid features, encompassing subscriptions, was previously acknowledged by the company. Last summer, a user survey was conducted to gauge willingness to pay for enhancements.
- Custom color schemes for profiles
- The ability to upload longer, higher-definition videos
- Profile badges signifying status
- Automated responses to tweets
- An “undo send” feature (presented as an alternative to a direct “edit” button)
- For businesses, options like brand surveys and advanced “social listening” analytics
Previous Statements from Twitter Leadership
During the Q2 2020 earnings call, Twitter CEO Jack Dorsey indicated the likelihood of subscription testing. He emphasized the potential for subscriptions and commerce to complement existing revenue streams.
Dorsey stated, “We believe there is a world where subscription is complementary… and a world where commerce is complementary.” He further suggested exploring support for paywalls and highlighted the company’s investment in teams dedicated to evaluating these options.
A job posting from the previous year referenced a team focused on “building a subscription platform,” and Twitter CFO Ned Segal confirmed plans for subscription tests during the Q3 2020 earnings report.
Details on Internal Projects
Bloomberg’s report revealed that one research project concerning subscriptions was internally designated “Rogue One.” Another project centered on the concept of “tipping” for access to exclusive content.
This tipping feature could potentially be linked to Twitter’s Revue newsletter platform acquisition, allowing users to pay for access to newsletters. Alternatively, it could be integrated into Twitter Spaces, the company’s audio-based networking feature, or represent an entirely new concept. Previous reports from The Information also mentioned a tipping feature under consideration, though Twitter stated it was not yet in development at that time.
Current Stance and Future Outlook
Twitter declined to provide additional details regarding its monetization plans. However, the company confirmed its ongoing evaluation of new revenue models to enhance growth.
Bruce Falck, Revenue Product Lead, stated, “Increasing revenue durability is our top company objective.” He added that Twitter will continue to research and experiment with diversifying revenue beyond advertising in 2021 and beyond.
Falck further explained that these efforts may include subscriptions and other features designed to provide users and businesses with unique capabilities for content creation, discovery, and engagement. He cautioned, however, that any significant revenue from these initiatives is not anticipated in 2021, with the primary focus remaining on expanding the advertising business.
Financial Performance and Upcoming Earnings
While Twitter exceeded analyst expectations for revenue and net income in Q3 2020, investor concerns persist regarding the company’s ability to significantly increase its user base. The Q4 2020 earnings report, scheduled for release on Tuesday, may provide further insight into Twitter’s plans for new revenue models.
