Twitter has been facing lots of tremors this year with hacking incidents and its declining ad revenue. The company reported a 23% decline compared to its revenue last year. It has accumulated $562 million ad revenue this year, and the ad revenue report in the last three weeks of June appeared to decline to %15.
The main contributors to this decline, according to the company are the pandemic and the “civil unrest” that leads to the major advertisers to pause campaigns.
Twitter has been offering free service since then like any other social platform. However, with the declining revenues as well as security breach issues, Twitter thought that a paid subscription might be a good alternative source of profits.
The company might test the subscription option this year. CEO Jack Dorsey stated that Twitter is “in the very early phase of exploring. We have a really high bar for when we would ask consumers to pay for aspects of Twitter.”
Twitter’s paid version aims to have a much cleaner interface without annoying ads and tracker free platforms which is kind of exciting for twitter users. However, it also brings Dorsey to address the security breach that happened last week. He apologized to the investors and admitted that in terms of responsibility for security they “fell behind.”
According to Dorsey, during the investor call, the subscription option will be “complementary” to their “advertising business.”
“We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls... we think is complementary,” Twitter’s CEO added.
This news about Twitter launching subscription option is old news. Since in 2017, Twitter surveyed about the premium offer of its TweetDeck app.