According to recent reports, after making the blue tick a paid feature, Elon Musk, Twitter’s new boss, is planning to monetize the platform. Many people are saying that this will not be a good decision for the business. Read the entire article to learn more about this news piece.
About the monetization of the platform
Paul Sutton, a social media consultant who has worked with massive brands including L’Oréal and Honda, told Fortune that he believed putting Twitter behind a paywall “would effectively sound the death knell for the platform.”
Noting that the majority of Twitter’s income is derived from advertising, Sutton said the question was really whether enough users would pay to use the platform to counter-balance what would be “an inevitable fall in that advertising revenue.” The answer to that, to me, is no,” he said. “Twitter has been an amazing network for many over the years, and historic users do still love it for the connections it can forge. But is it so valuable that those connections can’t be created elsewhere? No. Users will find somewhere else.”
Andrew Chadwick, a professor of political communication at Loughborough University, told Fortune in a call on Tuesday that Musk’s reported paywall plans “could end up undermining Twitter as a platform.”
“With platforms like Twitter, the lifeblood of their business model is advertising and eyeballs,” he said. “The problem with saying we’ll move the platform to a half-payment, half-free ‘freemium’ model that Silicon Valley has used a lot is that they’ll just lose users. There are plenty of users who are not prepared to pay for Twitter and will find the content free elsewhere.”However, Chadwick said there were also plenty of Twitter users who would be happy to pay a subscription.
“But one of the attractions of the platform model is that you can pay a subscription and get better features, but you do that on the basis that the audience for your messaging is not going to shrink,” he added. “The problem is, if they don’t get the balance right, they’ll shrink the audience—and therefore the people who are willing to pay for a subscription will think, Why should I bother?”
About Elon Musk
The richest man on the planet has recently acquired Twitter, a popular social media company. Although he is trying to do his best, his decisions are receiving less support from the public. People are not happy with his leadership and his decisions and are, therefore, exiting the app.