Twitter may be looking at subscription options in an effort to boost revenue and offset sluggish ad sales.
Like many social media platforms, Twitter has seen a surge in users as a result of the pandemic. During the most recent quarter, the company’s Monetizable Daily Active Users (mDAU) grew some 34% year over year, coming in at 186 million.
In spite of the good news, sluggish ad sales resulted in a 19% decline in year over year revenue. With $683 million in revenue for the quarter, Twitter saw an operating loss of $124 million.
To help offset the ad business, Twitter is looking at a number of options, including subscriptions.
We’re also in early stages of exploring add’l potential revenue products that complement our advertising business, which may include subscriptions & others. It is very early; we do not expect any revenue against these in 2020. $TWTR
Twitter Investor Relations (@TwitterIR) July 23, 2020
Subscriptions could be a game-changer for Twitter, giving it a way to better compete with new platforms. Only time will tell, however, if the company will commit to this route, and what the final version may look like.