Jack Dorsey has had two big successes, but both of them involved a large user base, not a workable business model. While Twitter remains at the center of a lot of drama over its political agendas, there’s the pesky capitalist matter of actually making money.
Twitter said advertising revenue was $562 million, down 23% year over year. Advertising revenue was down just 15% year over year in the last three weeks of June, according to the report.
But it is doubling down on censorship.
In its letter to shareholders, Twitter noted that it has “stepped up” its annotation of tweets that it believed violated its policies against misleading information. Internal models showed those actions prevented 68 million unannotated impressions from occurring. It’s also rolled out specific improvements to detect Covid-19 related misinformation.
Considering the bleeding, Twitter might want to stop driving conservatives off the platform and onto Parler, but it’s got a better plan.
Twitter (TWTR) is actively exploring additional ways to make money from its users, including by considering a subscription model, CEO Jack Dorsey said Thursday. The move comes as Twitter suffers a sharp decline in its core advertising business.
“You will likely see some tests this year” of various approaches, Dorsey told analysts on an investor call held to discuss the company’s second quarter earnings results. Dorsey said he has “a really high bar for when we would ask consumers to pay for aspects of Twitter,” but confirmed that the company is seeking to diversify its sources of revenue in what are “very, very early phases of exploring.”
Sure, turn Twitter into LinkedIn for the high end verified users. That’s bound to work out well. And limit access for everyone else.