Twitter is considering introducing a subscription model after the social media platform experienced a sharp drop in advertising revenue this year.
CEO Jack Dorsey confirmed during an investors call last Thursday (July 23) that Twitter were currently looking at other ways to make money following the 23% decline, which has been partly attributed to the coronavirus pandemic.
Speaking to analysts on the call about the platform’s second quarter earnings results, Dorsey said that “you will likely see some tests this year” of the various approaches that could generate extra revenue (via CNN Business).
While Dorsey stressed that he has set “a really high bar for when we would ask consumers to pay for aspects of Twitter,” he added that Twitter is seeking to diversify its revenue sources. The company is now in the “very, very early phases of exploring” other options to generate revenue, such as a possible subscription model.
“We want to make sure any new line of revenue is complementary to our advertising business,” Dorsey said. “We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls … we think is complementary.”
Shares of Twitter still rose by 4% following the news of its earning results last week.
Earlier this month, the Twitter accounts of a number of high-profile figures — including Kanye West, Elon Musk and Barack Obama — were hacked in what appeared to be a massive cryptocurrency scam.
Speaking on the same call, Dorsey said the hack was part of a “tough week” for Twitter and that “we fell behind” in terms of the company’s security obligations.