Twitter Shares Ad Revenue With Its Users Through Twitter Blue
After Elon Musk’s recent takeover at Twitter, multiple questions were raised regarding the future of the social media platform. One question and is perhaps the most interesting one is the massive restructuring of its monetization practices. According to this article by Social Media today, we now potentially have a vague answer of what that future could look like.
Previously this year, Musk announced a new Twitter’s subscription service called Twitter Blue. Users who pay the $8 per month price tag get a blue checkmark to verify themselves as a legitimate user, something previously only available to influencers and businesses. In addition to the checkmark, users get access to a list of features including: the ability to edit tweets, organize tweets into bookmark folders, custom app icons, NFT profile pictures, custom themes and more.
The move towards a subscription-based service is mixed-received by Twitter’s users, and the rate at which it is growing is very slow. According to The Information, around 180,000 people in the U.S. were paying for subscriptions to Twitter Blue as of mid-January 2023, or less than 0.2% of monthly active users. This slow growth rate hinders the idea of making subscription revenue the dominant form of revenue.
In his latest tweet, Musk announced that ad revenue will be shared with the creators whose reply threads they appear in, similar to YouTube. Only those who are subscribed to Twitter Blue will be eligible to use this feature. This further shows Musk’s vision for a more UGC-empowered Twitter. Despite how good this might sound, the percentage at which the user will receive is still unknown, and it is still unclear whether there are any extra requirements for participation.
The constant changes also affect Twitter’s relationship with advertisers, leading to an even more uncertain future. However, all the changes that Twitter is undergoing sparks an interesting conversation of a different revenue model in the social media industry. Another way of generating revenue other than ads and data is brought forth, prompting other platforms like Facebook and Instagram to experiment with new dynamic models.
Previously this year, Musk announced a new Twitter’s subscription service called Twitter Blue. Users who pay the $8 per month price tag get a blue checkmark to verify themselves as a legitimate user, something previously only available to influencers and businesses. In addition to the checkmark, users get access to a list of features including: the ability to edit tweets, organize tweets into bookmark folders, custom app icons, NFT profile pictures, custom themes and more.
The move towards a subscription-based service is mixed-received by Twitter’s users, and the rate at which it is growing is very slow. According to The Information, around 180,000 people in the U.S. were paying for subscriptions to Twitter Blue as of mid-January 2023, or less than 0.2% of monthly active users. This slow growth rate hinders the idea of making subscription revenue the dominant form of revenue.
In his latest tweet, Musk announced that ad revenue will be shared with the creators whose reply threads they appear in, similar to YouTube. Only those who are subscribed to Twitter Blue will be eligible to use this feature. This further shows Musk’s vision for a more UGC-empowered Twitter. Despite how good this might sound, the percentage at which the user will receive is still unknown, and it is still unclear whether there are any extra requirements for participation.
The constant changes also affect Twitter’s relationship with advertisers, leading to an even more uncertain future. However, all the changes that Twitter is undergoing sparks an interesting conversation of a different revenue model in the social media industry. Another way of generating revenue other than ads and data is brought forth, prompting other platforms like Facebook and Instagram to experiment with new dynamic models.
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