Twitter plans to make a version of its subscription product that doesn’t have ads. This is part of the company’s plan to make more money and get more people to buy its premium product.
Elon Musk has made it a key part of the business plan for the social media platform that he owns to increase subscription revenue.
The CEO of Tesla tweeted, “There will be a higher priced subscription that allows zero ads.” Twitter’s premium service was relaunched for the second time under Musk in December. Users can get perks like a verified account for $8 (£6.50) a month on the web or $11 a month on an iPhone or Android phone.
Advertising made up 90% of Twitter’s revenue in 2021, but since Musk bought the company last October, advertising revenue has gone down and daily revenue has dropped by 40% compared to last year.
Advertisers like Audi and Pfizer have stopped spending money on Twitter because they are worried about increased hate speech on the platform. This is made worse by a botched update to Twitter Blue in November, which led pranksters to pay for verified status so they could start fake corporate accounts.
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Musk said in a tweet on Saturday that ads were too frequent and “too big” on the platform, even though advertising was going down. He also said, “Taking steps to address both in coming weeks.”
Elon musk has tweeted the above statement from his twitter handle which is given below.
Ads are too frequent on Twitter and too big. Taking steps to address both in coming weeks.
— Elon Musk (@elonmusk) January 21, 2023
Elon Musk wants to make Twitter less reliant on ads because the company will soon have to pay interest on the $13 billion in debt he gave it when he took it over. Reports say that Twitter will make a quarterly payment of $300 million this month, which could happen as soon as this week.
According to theguardian.com, Elon Musk told staff in November that Twitter might not survive a downturn if subscription income doesn’t go up a lot.
“Without much money from subscriptions, Twitter will likely not make it through the next economic downturn. We need about half of our income to come from subscriptions,” he wrote in an email to the company.
Jessa Martin is the author of Nogmagazine, A professional in writing by day, and novelist by night, she received her bachelor of arts in film from Howard University and her master of arts in media studies from the New School. A Brooklyn native, she is a lover of naps, cookie dough, and beaches, currently residing in the borough she loves, most likely multitasking.