Twitter Plans To Monetize Content With 10% Cut On Subscriptions: Elon Musk

New Delhi, 29th April 2023: Elon Musk, the CEO of Twitter, recently revealed the company’s strategy for monetizing content, which includes taking a 10% share of all content subscriptions beyond the first year.

This action, which follows Musk’s earlier statement that users could sell their followers subscriptions to long-form text and hours-long video material, is intended to diversify the social media giant’s revenue sources, according to a report by Reuters.

For the first 12 months, Twitter won’t deduct anything from content subscription fees, though. This will enable content producers to increase their subscriber base without having to pay any fees. Given that Twitter is in competition with other major social media platforms like Facebook and YouTube, the move is anticipated to bring more creators to the platform.

Musk has been making adjustments at Twitter to increase revenue, particularly after the social media company experienced a decline in advertising revenue last year. The new idea is one step in the direction of Musk focusing on revenue creation after his purchase of Twitter for $44 billion in October 2022.

The company’s share of subscription fees on the iOS and Android platforms will decrease from 30% in the first year to 15% in the second. This change aims to encourage content creators to stay on the platform and keep creating interesting material by allowing them to keep a larger share of their profits.

Overall, it is anticipated that both content producers and the platform will gain from Twitter’s decision to monetize content using a subscription-based model and taking a 10% cut after the first year.