Subscription Fees, the Golden Goose for Twitter
Twitter, an online social platform offers premium services at monthly charges. Despite being a growing online social platform, Twitter made less revenue than anticipated. Its stock decreased in value leading to a substantial loss. In response to this, an initiative was made of introducing an encrypting game changing premium subscription service. The aim of this is to increase the value of the stock and hence the revenues generated in the long run.
At just $15, the stock enterprise generates value that is less than $10 billion. This makes one wonder if the repetitive revenue streams are sufficient reasons to own the stock.
According to some speculation by several media sources, a Twitter spokesman confirmed that indeed Twitter has been researching to determine the interest that can be gained from a premium service for Tweet Deck. It was noted that despite the service being preferred by both power users and content creators, a majority of the users felt that the services needed improvement by installing more advanced features into the service.
Andrew Tavani through his twitter account provided an insight of the proposed service. He explicitly disclosed the outlook of the premium version of Tweet Deck.
From his Twitter handle, Andrew Tavani fully displayed some of the new features which included several analytical tools together with an ad-free experience on Twitter. However, the most outstanding feature is that it offers a monthly charge of $19.99.
Comparisons have been made in the past between Twitter and Facebook to determine which is more popular. This is despite the fact that Twitter is more of an offspring brought out by Microsoft (NASDAQ:MSFT) in conjunction with Facebook. Even though Twitter seems to share some features and aspects similar to Facebook, it contains explicit services that power users of LinkedIn are prepared to pay for in order to attract the interest of influential people.
Twitter lacks the social properties and essentials that attract soccer moms together with teenagers that Facebook offers. The optimum solution for Twitter is derived from focusing on premium services that are similar to those from LinkedIn.
Efforts have been made in the form of surveys to establish whether or not the users are able and willing to pay $19.99 monthly for the premium services. Even though the charges seem high, it provides an excellent opportunity due to the value of the platform and the likelihood of the user base to pay for the service.
According to the research conducted by Darren Rovell, 35% of users expressed their willingness to pay for the service. This proved that despite the high charges paid for the premium services, power users took it positively and would pay even higher if need be. Darren even stated that he would gladly pay up to $100 per month.
It is more likely that this initiative will definitely boost Twitter revenue to about $40 million from the monthly subscription of $19.99.