⁍ Twitter CEO Jack Dorsey said Thursday the company is exploring additional ways to make money from its users.
⁍ The move comes as Twitter suffers a sharp decline in its core advertising business.
⁍ Twitter reported second-quarter ad revenues of $562 million, a 23% decrease compared to the same quarter a year ago.
– Twitter reported second-quarter revenue of $562 million on Thursday, a 23% drop compared to the same quarter a year ago. The company’s stock rose 4% in early trading Thursday following the earnings results, CNN reports. Twitter CEO Jack Dorsey said during the call with analysts that the company is “actively exploring additional ways to make money from its users,” including a subscription model. “You will likely see some tests this year of various approaches,” he said. “We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls … we think is complementary.” Dorsey said he has “a really high bar for when we would ask consumers to pay for aspects of Twitter,” but confirmed that the company is seeking to diversify its sources of revenue in what are “very, very early phases of exploring.” Earlier this month, rumors flared about a paid Twitter option after the company posted a job opening focused on building a subscription platform codenamed “Gryphon.” Twitter’s stock surged at the time, signaling investor appetite for the company to find new revenue streams. Like its rival social networks, Twitter has focused on offering a free service and making money by allowing brands to target ads to its millions of users.
Source: https://www.cnn.com/2020/07/23/tech/twitter-subscription-earnings/index.html