Twitter will now let users offer subscriptions to their content — whether it is text, video, or anything else on the platform.
In a tweet thread, the social network’s boss Elon Musk said that users can now “Apply to offer your followers subscriptions of any material, from longform text to hours long video!”
The South African businessman also added that for the next 12 months, Twitter will keep none of the money earned through the subscriptions.
However, pouring scorn on Apple and Android, Musk added that creators would only receive 70 per cent for subscriptions on iOS and Android as both phone operating systems charge 30 per cent to process in-app payments. On the web, Musk said it should be around 92 per cent, though this depends on the payment processor.
Musk also said that after the first year, iOS and Android fees would drop to 15 per cent and Twitter would add a “small amount” on top of that, depending on the volume.
“We will also help promote your work. Our goal is to maximize creator prosperity,” he declared.
Sharyn Smith, CEO and founder of Social Soup, said that Musk’s initiative was a “smart move.”
“The social platforms all know they don’t have a business without creators who drive the vast majority of engagement on the platform. The latest announcement from Elon on giving all revenue to creators from their subscriptions is a smart move in playing catch-up in the creator economy and would incentivise some creators to move platform or start on Twitter. It is an opportunity for creators to test Twitter as a platform for distribution. Some creators will justifiably be wary as once they build the audience it is harder to shift and Elon has not signalled how much they will take after the 12 months.”
The move is part of Musk’s broader plan to move Twitter away from its dependency on advertising revenue. When he took the reigns, as much as 90 per cent of Twitter’s earnings came from advertiser dollars.
While the success of his plans to account for the lost ad dollars has been mixed at best — such as charging users for verification — Musk has been more successful in getting advertisers to leave the platform with many huge brands pausing or removing their spend entirely, despite his assertions to the contrary.
With that being said, Musk said in his rambling interview with the BBC that Twitter is operating at breakeven and that it might even become cash-flow positive in this quarter. Of course, Musk has been known for making bold predictions that do not materialise.
