Elon Musk may have to think of a lot more ways to make Twitter Blue appealing to potential subscribers if he wants the subscription service to be a major source of revenue. According to The Information, only 180,000 people in the US have been paying for a Twitter subscription by mid-January, and that’s apparently around 0.2 percent of the website’s monthly active users. The publication said it saw the information on a document, which also revealed that 62 percent of the company’s paying users reside in the US. That means Twitter has approximately 290,000 subscribers worldwide.
Twitter Blue costs $8 a month for users who pay via web — or $7, if they pay for an annual subscription — and $11 for those who pay via Apple’s or Google’s app stores. Since the latter option gives the tech giants a cut of subscribers’ payments, Twitter still only gets $8 a month from users overall. With the current number of paying users, the website is only set to earn $27.8 million a year from its subscription services. That said, Twitter has only just relaunched Blue in mid-December last year after a bumpy initial launch a month before that. It’s bound to rack up more subscribers, though it remains to be seen if it can achieve the level of growth Musk wants to see.
As The Information notes, Musk told Twitter employees last year that he wants half of the website’s revenue to come from subscriptions. Since the company has to pay over $1 billion a year in interests alone from the loans Musk took out when he purchased the website, the executive is aiming to take in a revenue of $3 billion for 2023. Twitter has to have quite a lot of subscribers to earn half of that from Blue. One avenue the company is considering to earn more from its subscription services is to offer a higher-priced membership tier that allows users to browse the website with zero ads. Twitter is also reportedly planning to charge businesses $1,000 a month for their gold verification badges and an extra $50 a month for each account affiliated with them.
SOURCE: engadget.com