After a drop in advertising revenue, Twitter CEO Jack Dorsey told analysts today that the social media company is looking for additional ways to make money, including some kind of subscription service.
According to CNNAccording to Dorsey, Twitter is likely planning some tests with different approaches this year, but there is a “really high bar” when Twitter asks customers to “pay for aspects of Twitter”. The comments were made as part of Twitter’s second quarter earnings report.
Twitter is in the “very, very early phase” of exploring various options. The comments follow a Twitter job posting earlier this month that was looking for someone to work on a subscription platform codenamed “Gryphon”.
Like most other social networks, Twitter is a free service that is currently making money from advertising revenue. However, Dorsey said there is “a world” in which Twitter could also have a complementary subscription service.
“We want to make sure every new line of sales complements our advertising business,” said Dorsey. “We believe that there is a world where subscriptions are complementary, where trade is complementary, where people are helped to manage paywalls … we think they are complementary.”
Advertising spending has decreased as a result of the ongoing public health crisis, which has impacted social networks and other services and websites that rely on advertising revenue. Twitter’s second quarter advertising revenue was $ 562 million, a 23 percent decrease from the second quarter of 2019.
Twitter’s earnings report follows last week’s big Twitter hack in which Bitcoin fraudsters manipulated Twitter employees to gain access to Twitter’s internal systems. The fraudsters have had access to the accounts of many high-profile companies and individuals, including Apple, and Twitter is still working to deal with the consequences of this attack.