Due to a significant drop in ad revenue, Twitter might introduce a subscription structure as an alternative to get its business back up.
The Q2 earnings recently revealed by Twitter report a significant drop in ad revenue, specifically the 23 percent dip in ad revenue compared to last year, sitting at $562 million. The company traces the causes of this dip in the ongoing COVID-19 pandemic coupled with “civil unrest” that has swept the U.S. and made advertisers shut down or pause campaigns.
CEO Jack Dorsey mentioned to investors that Twitter will most likely test a subscription model. He stated: “We want to make sure any new line of revenue is complementary to our 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.” Some sources have speculated that a paid version of Twitter could mean a user experience without ads, algorithms, and trackers, but specific details on what the possible subscription service would entail remain in the works.