Twitter’s long-term effort to better monetize its platform is finally taking shape, as the company announced on Thursday the launch of a subscription service called Twitter Blue.
With Twitter Blue, Twitter offers experienced users access to exclusive features, including the ‘Undo Tweet’ option, which allows users to correct errors on a tweet before it is published, as well as the “Reader”, which allows long threads to be read more cleanly.
Find new sources of income
Subscribers will also have access to bookmarks folders, which allow users to organize saved tweets, in addition to other perks such as customizable app icons for their device’s home screen, and l ” access to customer support dedicated to subscribers.
“Those who use Twitter a lot, really a lot, told us that we don’t always create powerful features that meet their needs. That’s about to change, ”the company wrote in a blog post. “We’ve taken these comments to heart, and are in the process of developing a solution that will give frequent Twitter users the most they want: access to exclusive features and perks that will make their experience appear on the web. Twitter to the next level. “
The service, which will first be launched in Canada and Australia, is Twitter’s first attempt to diversify its revenue streams through an economic subscription model. The company currently derives most of its revenue from advertising, but has faced increasing pressure from Wall Street to find additional sources of revenue. For its first fiscal quarter, Twitter’s advertising revenue was $ 899 million, out of total revenue of $ 1.04 billion.
High development goals
Twitter has explored a number of options designed to help the company expand its user base and double its annual revenue by 2023. In an official document dated February this year, Twitter says it wants to “double its speed of development by the end of 2023, which means doubling the number of features delivered per employee that directly generate mDAU [utilisation active quotidienne monétisable ou utilisateurs] or income ”.
In addition, Twitter aims to reach at least 315 million mDAU in the fourth quarter of 2023, which is a compound annual growth rate of around 20% from the base of 152 million mDAU reported in the fourth quarter of 2019. company wants to at least double its total annual revenue, from $ 3.7 billion in 2020, to $ 7.5 billion or more in 2023.
As for Twitter Blue, the service will cost C $ 3.49 per month, for Canadian users, or A $ 4.49 per month, for users in the Australian market. Twitter emphasizes in its announcement that the free version of Twitter will never go away. The subscription offer is only intended to complement the existing free version of Twitter for those who wish, the company says.