In a detailed report about how Twitter Inc can make progress in 2017, Tae Kim at CNBC suggests that the social media company should consider launching an ad-free paid subscription service. It’s one of a handful of ideas Kim presents in his commentary.
2016 wasn’t a good year for Twitter. Even with the massive exposure and PR brought by President-elect Donald Trump and his daily use of Twitter, the company only grew in notoriety. Shares of the company dropped by around 30% during the last 12 months.
On Thursday, the company’s CEO Jack Dorsey asked Twitter users to share their thoughts on what the company should do next year. In response, CNBC’s Kim wrote four top suggestions to “re-accelerate Twitter’s user growth and bring some of the magic back.”
Paid Subscription Service
Twitter could launch an ad-free paid subscription service to give the top users the opportunity to make money.
According to Kim, a paid service will offer subscribers an ad-free experience with additional premium messaging and community features. This service would encourage the users to keep producing the best content, attracting more users.
Twitch, before the video-game streaming social network got acquired by Amazon, offered a service which allowed users to subscribe to channels for $5-per-month and paid the creator a 50% split of the revenue generated.
In the case of Twitter however, it’s difficult to imagine users paying a penny for the service even with a few premium features thrown in – even for an ad free experience. Consider the challenge YouTube has selling it’s premium “Red” service. Only a very small percentage of users are willing to pay, even for a service that gives them access to exclusive content.
3 Other Ways Twitter Can Improve in 2017
On Twitter, spamming is a serious problem. The social networking company needs to take aggressive actions against spammers who use @reply, direct messages and fake profile follow notifications which are an annoyance to users.
Kim notes that serious actions could hurt traffic metrics in the short-run, but it’s a right move in the long-term.
There are many amazing users on microblogging networking who create great content. But it’s difficult to find the best accounts to follow, according to Kim.
Twitter Inc could make finding content easier by introducing curated lists on 50 topics – sports, news, finance, and others – filled with the best experts. This can not only make finding quality content easier on the micro-blogging service, but could spur increased user activity.
Moreover, there are tremendous opportunities for the company in video and mobile streaming. According to Kim, the company “can ramp its video programming offerings on a separate tab in its mobile and Apple TV apps.”
“From concerts, news shows, sports and other live events, the company has a large growth opportunity to be the leading live mobile video distribution platform. Highly-targeted video ads during the streams should also become increasingly valuable to marketers,” Kim writes.
Twitter sees big advertising opportunities in live video streaming. The company is planning to stream sports and entertainment events, as well as political shows to attract more users to its platform. The social media company signed a deal with Sky Sports to show Premier League football videos this upcoming season. The deal was part of the company’s plans to stream live events and shows and attract more users. The social media company believes that live events would help it boost revenue by attracting video advertisers.
Twitter Inc is looking to transform the makeup of its workforce. The company has been trying to streamline its organizational structure with additional teams, primarily in design and engineering. It seems that everyone will report directly to Dorsey moving forward.