Twitter is exploring adding a subscription feature as a way to ease its dependence on advertising. These paid subscriptions will include charging money for access to Tweetdeck.
TweetDeck is a popular alternative to the main Twitter website and mobile app with a dashboard that allows users to efficiently manage multiple accounts. The service is primarily targeted at professional creators on the site.
Apart from charging for TweetDeck, the company is also said to be exploring other ideas, including charging for new features like an “undo send” button or more profile customization options like profile badges, custom colors, the ability to publish longer and more high-def videos, auto-responses and more in-depth analytics. Another idea involves introducing “tipping” to Twitter, where users could pay accounts for exclusive content.
Why this matters: The majority of Twitter’s revenue comes from targeted advertising, but the business has grown at a slower pace than competitors like Facebook and Snap Inc that is why the company is exploring these alternative options as a way to reduce its dependence on advertising
What they are saying: According to Bloomberg, Twitter Chief Financial Officer, Ned Segal, a subscription option of some kind would offer sales ‘durability,’ and recurring revenue is more consistent than advertising spending. He also noted that Twitter was not only “very, very early” in exploring a subscription service, but also planned to be picky about how it goes forward.
“We have a really high bar for when we would ask consumers to pay for aspects of Twitter,” Segal said.
Reports from Bloomberg show that Twitter is under pressure by high-profile activist investors to diversify, so introducing premium paid features would be a good way to increase revenue and accelerate growth.
Twitter is due to report its latest earnings tomorrow, so there’s a chance that they may update investors on these ideas.