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Twitter CEO Elon Musk recently announced the platform’s plan to monetize content by taking a 10% cut on content subscriptions after the first year. This move is aimed at diversifying the social media giant’s revenue sources and comes after Musk’s earlier announcement that users could offer their followers subscriptions to long-form text and hours-long video content, stated a report by Reuters.
However, Twitter will not be taking a cut for the first 12 months on content subscriptions. This will give content creators a chance to build their subscriber base without incurring any charges. The move is expected to attract more creators to the platform, as Twitter competes with other social media giants like Facebook and YouTube.
Musk has been bringing in changes at Twitter to boost revenue, especially after the platform saw a drop in advertising income last year. The acquisition of Twitter by Musk for $44 billion in October 2022 has prompted him to focus on revenue generation, and the new plan is one of the steps in this direction.
The company’s cut from subscriptions on iOS and Android platforms will drop to 15% in the second year, down from 30% in the first. This move is aimed at incentivizing creators to stay on the platform and continue to produce engaging content, as they will be able to retain a larger portion of their earnings.
Overall, Twitter’s move to monetize content through a subscription-based model and taking a 10% cut after the first year is expected to benefit both content creators and the platform. It remains to be seen how this move will impact Twitter’s revenue in the coming months and whether it will lead to more changes in the social media giant’s business model.
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