Elon Musk wasted no time over the weekend in a long-standing tradition, speaking out on the issues that mattered most to him. He acknowledged that ads on Twitter take up too much space and are shown too often. Along the way, he confirmed intentions to offer Twitter users a service with a higher subscription fee that would deprive them of the need to see ads.
As you know, last year, as part of the relaunch of the Twitter Blue subscription, the new owner of the social network promised customers that they would halve the amount of ads they see. At the same time, the intention was announced to introduce a more expensive tariff plan in 2023, which would allow users of the social network not to see ads at all. Elon Musk this week Confirmedthat preparations for such changes are underway.
Keep in mind that nearly 90% of Twitter’s revenue last year came from advertiser money. According to an unofficial estimate, the company’s sales fell by 40% every day in January this year. Over time, Elon Musk hopes to make subscriber money the company’s primary source of revenue, but so far, all of those transformations have turned into serious losses. According to some reports, since Elon Musk took office as Twitter’s CEO in late October, the company has cut almost 80% of its workforce, and about 500 companies and organizations have turned down endorsement deals.
In recent weeks, Twitter has tried to show flexibility in its pricing policy for subscribers, offering savings by instantly paying for a subscription for a year in advance, but at the same time, users of Google Android devices have been unable to rely on it limit spending $8 per month when paying for a subscription directly through the application. They are now forced to pay $11 per month just like Apple iOS users, but both customers can save $3 by paying for a subscription through the website.