PublishedJanuary 22, 2023, 08:52 am
TwitterNew, more expensive subscription to hide ads
Twitter owner Elon Musk announced this Saturday a “more expensive subscription that lets you no longer have ads.”
Twitter owner Elon Musk announced in a series of posts on his social network on Saturday that the latter will soon offer “a more expensive subscription that lets you no longer have ads.” It will be a radical change to the business model of Twitter, which until now relied on targeted ads to generate revenue, before launching its first paid subscription in mid-December.
This new zero-ads subscription will be part of a broader strategy, which the American billionaire announced in a tweet, to overhaul the presence of ads on the social network. “Twitter ads are too frequent and too big. We will act on these two parameters in the coming weeks,” Musk wrote. The social network has faced severe economic difficulties since its takeover by Elon Musk in late October. The company initially laid off about half of its 7,500 employees.
In late December, the man who is also at the helm of Tesla and SpaceX estimated that Twitter could reach around $3 billion (€2.76 billion) in turnover this year, the equivalent of a 41% reduction from before 2021. The various decisions taken by Elon Musk have indeed put off a significant portion of the mainstream advertisers who are terrified of the return to the platform of people who were initially banned for racist or conspiracy theories.
The company held an auction on Wednesday, offering at least 631 lots of furniture and décor items, including a huge light installation depicting the famous blue bird, which sold for $40,000. To make up for the advertiser flight, the multi-billionaire, who explained that he had to “cut wildly” to avoid cutting off payments, is counting on subscription formulas, starting with Twitter Blue, offered from $8 to $11. per month depending on the subscription mode, and therefore this new offer will be ad-free.
For about a month, Elon Musk has also been looking for his successor as head of the San Francisco company, after a poll found that 57% of the roughly 17 million participating users were in favor of his departure.