Twitter Inc CEO Elon Musk announced on Friday that the social media platform will take a 10% cut on content subscriptions after the first year, as the company looks to diversify its revenue sources. Musk had recently revealed that users would be able to offer their followers subscriptions to content, including long-form text and hours-long video. He had also stated that Twitter would not take a cut for the first 12 months on content subscriptions.
The move is part of Musk’s efforts to boost Twitter’s revenue after the platform saw advertising income drop last year. Musk has been making changes to the platform since his $44 billion acquisition of Twitter last October.
Twitter’s cut from subscriptions on iOS and Android platforms will drop to 15% in the second year from 30% in the first. This is aimed at encouraging creators to continue using the platform to monetize their content.
Elon Musk has been vocal about his plans to make Twitter more profitable by expanding its features and revenue streams. Twitter’s new subscription service, called Twitter Blue, will be launching soon in Canada and Australia, with other markets to follow.
The subscription service will allow users to access premium features like undoing tweets and bookmark folders for $3.49 CAD or $4.49 AUD per month. The price is expected to vary depending on the country.
The move towards subscriptions is seen as a way to reduce Twitter’s reliance on advertising revenue, which has become increasingly volatile due to the pandemic. Musk believes that Twitter can offer a better experience for creators than other platforms, which is why he wants to attract more of them to the platform.
The announcement comes at a time when other social media platforms, like Facebook and YouTube, are also exploring ways to monetize content for creators. Facebook is reportedly testing a similar subscription service, while YouTube already offers a subscription-based model for creators.
It’s efforts to expand its revenue streams are seen as critical to its long-term survival, as it faces increasing competition from newer platforms like Clubhouse and TikTok. Musk’s changes to the platform are expected to continue as he looks for ways to keep the platform relevant in the fast-changing world of social media.
It has seen its user base decline in recent years, as users shift to newer platforms with more advanced features. Musk’s focus on expanding Twitter’s revenue streams is seen as a way to retain users and attract new ones.
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Overall, the move towards subscriptions is expected to benefit both creators and app. Creators will be able to monetize their content more easily, while Twitter will be able to reduce its reliance on advertising revenue and diversify its sources of income. The move is also expected to make it a more attractive platform for creators, which could help to boost its user base in the long run.
