Twitter Inc [NYSE: TWTR] is building a subscription product to ease its dependence on the advertisement. As the company’s most revenue depends upon advertising the company was considering the subscription service for a long time to further diversify its revenue.
The company is exploring revenue-generating options, many teams are established to research the subscription offering. One of the possibilities includes a tipping system in which the user has to pay for exclusive content to the people they follow. Another possibility is charging for Tweetdeck, with Tweetdeck the users are enabled to manage and post stuff across multiple accounts. One of the options is also to charge the user for advanced features.
Last year the company asked the users if they had several options what would the user consider paying for. The options included Undo send, custom theme color for app and website, advanced analytics, customized profile badges, customized stickers, insights of other user accounts, customized hashtag, and recruiting features.
Ned Segal CEO of Twitter stated” A subscription offer will offer some kind of sales stability and this type of revenue is more consistent and durable than advertisement spending. Twitter is very picky about how we should move forward with our subscription and that the company has a really high bar for when it will ask the user to pay for its features”
Bruce Falck Revenue Product Lead of Twitter said “ This may provide users with the subscription or other approaches that will enable their access to advanced aspects of Twitter and enhance their opportunity In content creation, engagement and discovery”
He further said “ The company is still very early in the exploration process and no major changes are to be expected in revenue model in the current year”