Elon Musk, the owner of Twitter, announced on Thursday that users will soon be able to provide subscription options for their followers, enabling them to access long-form text and extended video content.
This new subscription feature, available via the “Monetization” tab in the platform’s settings, ensures that creators will retain all revenue generated from subscribers, excluding fees imposed by services like Android and iOS. For the first year, Twitter will not take a percentage of the earnings.
Musk highlighted this financial opportunity in a tweet, stating that subscribers on iOS and Android would see approximately 70 percent of their payments after a 30 percent fee, while web subscriptions could yield around 92 percent, depending on the payment processor. He also mentioned that Twitter plans to promote creators’ content to help enhance their earnings.
However, Google disputed Musk’s statement through an email to Reuters, clarifying that it reduced its service charge for subscriptions on Google Play to 15 percent from 30 percent in 2022.
Since Musk’s takeover, he has implemented various changes aimed at increasing revenue for Twitter, especially following a decline in advertising income prior to his acquisition, which finalized in October.
Under his leadership, the company has swiftly introduced several new products and organizational adjustments, including the launch of a paid Twitter-verified blue tick service and a significant reduction in its workforce by approximately 80 percent.
In a Twitter Spaces interview on Wednesday, Musk indicated that the company is now “roughly breaking even.”
Additionally, Musk has reportedly offered Twitter employees stock grants with a valuation of nearly $20 billion (about Rs. 1,64,600 crore), according to The Information, which cited a source familiar with an email Musk sent to staff.
This valuation reflects a significant decline, amounting to less than half of the $44 billion (around Rs. 3,62,100 crore) Musk spent to acquire Twitter, signaling a drop in the platform’s overall market value.
Twitter did not provide an immediate response to a request for comment from Reuters.
© Thomson Reuters 2023
