Twitter CEO says he’s considering subscription model

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Twitter is exploring potential ways to further monetize its platform – including considering the introduction of a paid subscription model – the company said today.

CEO Jack Dorsey reportedly revealed the plans during a conference call with analysts to discuss the company’s relatively disappointing second quarter results.

Twitter’s ad revenue was down 23% from the same time last year – to $ 562 million – as advertisers cut spending amid COVID-19.

However, the company’s shares surged earlier this year when rumors of a subscription platform, “Gryphon,” first surfaced online – indicating investor interest.

It is unclear what parts of the platform would potentially become reserved for subscribers, but Mr Dorsey has indicated that it may be revealed in the coming months.

At this time, it’s also unclear how much a Twitter subscription might cost.

Twitter is exploring potential ways to further monetize its platform – including considering the introduction of a subscription model – the company said today.

According to CNN Business, Mr. Dorsey said that “you’ll probably see tests this year” of new revenue-generating approaches on the Twitter platform.

However, the social media company was only in the “very early stages of exploring” such measures, he added.

Mr Dorsey also said he had “a very high bar for when we would ask consumers to pay for certain aspects of Twitter”.

Until now, Twitter has offered a free service – instead generating revenue by allowing other businesses to purchase targeted ads deployed to the appropriate sections of the platform’s multi-million dollar user base. ‘users.

However, the platform’s advertising revenue has suffered financially from both the effects of the coronavirus pandemic and recent advertising boycotts related to racial justice protests in the United States.

“We want to make sure that any new revenue line is complementary to our advertising business,” Dorsey said, according to CNN Business.

“We believe there is a world where subscription is complementary, where commerce is complementary, where to help people manage paywalls […] is complementary. “

CEO Jack Dorsey (pictured here in April 2019) reportedly revealed the plans during a conference call with an analyst to discuss the company's relatively disappointing second quarter results.  Twitter's ad revenue fell 23% from same period last year - to $ 562 million - as advertisers cut spending amid COVID-19

CEO Jack Dorsey (pictured here in April 2019) reportedly revealed the plans during a conference call with an analyst to discuss the company’s relatively disappointing second quarter results. Twitter’s ad revenue fell 23% from same period last year – to $ 562 million – as advertisers cut spending amid COVID-19

Mr Dorsey’s announcement comes on the heels of a ‘difficult week’ for Twitter, which saw the social media platform under attack that compromised a number of high profile accounts to promote a scam cryptocurrency.

Victims of the hack included politicians such as US presidential candidate Joe Biden and former US President Barack Obama, CEOs including Tesla founder Elon Musk and Amazon Jeff Bezos, and celebrity Kanye West.

Yesterday, Twitter revealed that 36 people – including an elected official from the Netherlands – had their direct message history exposed during the attack.

According to CNN Business, Mr. Dorsey today apologized for the breach, noting that the company “has fallen behind” on its security obligations.

“We feel terrible about the security incident,” he reportedly said.

“Security has no end point. It’s a constant iteration. “

“We will continue to go above and beyond here as we continue to secure our systems and continue to work with outside firms and law enforcement.

Despite recent Twitter troubles, however, the company’s shares were up 4 percent early in trading this morning, after the second quarter figures were released.

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