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Twitter plans to add a paid subscription with exclusive content and additional features
08.02.2021 [21:45],
Maxim Shevchenko

According to Bloomberg, the social network Twitter is considering introducing paid subscriptions into its service, allowing users to get access to exclusive content from the authors they follow for a certain fee. This move will allow Twitter to reduce its dependence on targeted ad revenue.

It’s worth noting that Twitter’s ad revenue is quite limited and lags far behind Facebook and Snapchat. The company’s share in the online advertising market is only 0.8 percent. It is assumed that the introduction of a paid subscription service will help the social network to significantly increase its profits. Twitter is currently exploring possible options for implementing subscription services. One of the ideas under consideration relates to the possibility of introducing payments to content creators for exclusive materials. In addition, among the options considered, there is a fee for using services such as Tweetdeck or advanced social network functionality, such as canceling messages or advanced profile settings.

It should be noted that the introduction of a paid subscription will allow the social network to reach a qualitatively new level, reducing the collection of user data and the number of ads. Twitter CFO Ned Segal said last year that implementing a subscription option would improve the stability of the social network’s revenue over ad sales. In addition, he said that the company has been considering the option of introducing a paid subscription for quite some time. However, Twitter’s head of sales said that while improving revenue sustainability is the company’s main goal, the social network does not expect any significant revenue from the subscription service in 2021.

Analysts suggest that in order for the paid subscription service to start generating stable profits, Twitter must invest in creating premium content that will attract potential subscribers. According to Pivotal Research Group analyst Michael Levine, even if Twitter, which had 187 million daily active users in the third quarter of 2021, attracts 10 million subscribers, it will not be enough, and creating a product that is interesting to a limited group of users is empty a waste of time.

Paid service options considered by Twitter include advanced analytics, advanced profile management, account verification, enhanced video quality, payment for Tweetdeck or exclusive content. The company states that whichever option is ultimately chosen, the paid service will be provided at the highest level.

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