Twitter is Considering A Subscription Model
Earlier this month, rumors flared about building a subscription platform codenamed "Gryphon."
On Thursday, Twitter CEO Jack Dorsey said , "You will likely see some tests this year" [of various approaches,] .... 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 is in its "very, very early phases of exploring."
This announcement came in reaction to Twitter reports that the second-quarter ad revenues were $562 million, a 23% decrease compared to the same quarter a year ago.
"We want to make sure any new line of revenue is complementary to our advertising business," Dorsey said. "We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls ... we think is complementary."
Shares of Twitter rose 4% in early trading Thursday following the earnings results.
Twitter's earnings report follows what Dorsey described as a "tough week" in which the company experienced a massive hack that compromised numerous verified accounts, including those of Barack Obama, Joe Biden, Elon Musk and Jeff Bezos.
Dorsey apologized saying, "We feel terrible about the security incident, ... Security doesn't have an end point. It's a constant iteration ... We will continue to go above and beyond here as we continue to secure our systems and as we continue to work with external firms and law enforcement."