By John P. Mello Jr.
May 17, 2021 4:52 PM PT
Twitter is adding some new powerful features to its repertoire that users can access at a set price.
The new premium offering, called Twitter Blue, costs $ 2.99 per month and allows users to undo tweets and build collections of their favorite tweets, according to independent researcher Jane Manchun Wong.
Twitter is calling its upcoming subscription service “Twitter Blue,” which is currently priced at $ 2.99 per month, including paid features such as:
Undo tweets: https://t.co/CrqnzIPcOH
Collections: https://t.co/qfFfAXHp1o pic.twitter.com/yyMStpCkpr
– Jane Manchun Wong (@wongmjane) May 15, 2021
When you start sending a tweet on Twitter Blue, an undo button will appear on the screen giving you a few seconds to reconsider your action.
“This one role is probably worth it for many people who don’t want to lose their job or reputation because their fingers moved before they even got into their brains,” said Rob Enderle, president and chief analyst, Enderle Group. a consultancy service company in Bend, Ore. said the E-Commerce Times.
The new collection feature extends Twitter’s bookmark feature, which saves a series of tweets in chronological order. Collections can be used to manage saved tweets, while bookmarks are managed in a browser.
Reports have been published on a Twitter premium service for almost a year. However, it is the first time that images of the service have been released along with some details about the offering.
Twitter declined to comment on the story through a spokesman.
Show me the money
Wong also suggested that Twitter might consider some sort of tiered premium arrangement, with Blue included in one tier and other tiers, including features from two recent Twitter acquisitions, Revue and Scroll.
Revue is a newsletter publication platform modeled on SubStack that authors can use to monetize their newsletters. Scroll is a subscription service that removes ads from news pages.
“Twitter appears to be in testing mode to see how best to monetize its base,” said Nicole Greene, Gartner’s senior research director, digital marketing.
“They tested various services, such as charging influencers who benefit directly from the platform,” she told the E-Commerce Times. “When users pay the subscription fee, they are positioned more as a content news entertainment channel, which puts a burden on people looking for content.”
“It will be interesting to see if the user base is receptive to the service,” she added. “They have a relatively active, but smaller, user base than other social media platforms.”
Precarious business model
Enderle noted that social networks in general are looking for alternatives to advertising for income.
“For most social networks, they have to realize that their business model is now at risk,” he said. “So if they can get revenue from users as opposed to advertisers, they can better focus on the things that users need.”
“The idea of deleting customer information is unlikely to be sustainable against government backlash,” he continued. “Social networks recognize that if they don’t make changes for the benefit of users, there is a good chance they will be out of date if not shut down.”
“The trend against them is quite significant in antitrust activity and the various investigations into their business models,” he said.
“Moving to a billing service means sales and users are on the same page, as opposed to now where sales and users influence each other,” he added.
Is it worth?
The question for Twitter is whether Blue offers enough value to users willing to save $ 3 a month on its offerings.
“The current model is subscription,” said Karen Kovacs North, director of the Annenberg Program for Online Communities at the University of Southern California.
“But the subscription must be of value to the customer,” she continued, “otherwise there is no need to sign up.”
“For the vast majority of users, it’s hard to imagine what Twitter could be worth $ 3 a month,” she told the Ecommerce Times.
“Since Twitter isn’t an entertainment platform – it’s a news and information platform – it’s hard to imagine that people would be willing to pay a monthly premium for the kind of service Blue offers.”
However, with the right style of marketing, Enderle believes that Blue could gain some attraction among Twitter users. “The tweet undo feature, which could be insurance against losing your job, is probably worth the $ 3 a month Twitter charges alone,” he suggested.
“I would argue, however, that undoing tweets should be part of the free service, not the fee service,” he added. “If you create a problem for the user, we should fix that problem for free.”
Must target creatives
Ross Rubin, the lead analyst at Reticle Research, a consumer technology consultancy based in New York City, noted that features like undo and collections have widespread appeal, but added, “Most Twitter users wouldn’t find enough value in these types of features that need to be updated. “
Twitter should focus on premium services for creatives on the platform, he argued. Although he’s a small group, he told the E-Commerce Times, “They’re important to Twitter because they’re the type of people who drive a lot of the traffic on the platform.”
“Twitter really hasn’t done much to help these people make money on the platform unlike the things Instagram and YouTube do,” he added.
Even so, Morningstar’s senior equity analyst Ali Mogharabi praised Twitter’s subscription strategy in a recent research report.
“In addition to promoting, we believe the company is taking the right steps to implement subscription models like Super Follows, Revue and others,” he wrote.
“Twitter’s Spaces also offers more monetization opportunities, although almost every social media company will be adopting audio and community capabilities,” he added.
He also agreed to the company’s move away from its heavy reliance on brand advertising by improving its MAP product.
MAP, which is easier to use for campaign creation, management, and performance measurement, in addition to its general self-service dashboard, has improved the platform’s ability to attract small and medium-sized businesses who primarily run direct-response ads.
Management said advertising revenue from small and medium-sized businesses rose double-digit year over year in the first quarter, he added.
“While these opportunities exist, the main issue is execution and whether Twitter can roll out the new features quickly,” he noted. “With the improvements in MAP and the introduction of Spaces, which is now available for Android in addition to iOS, we are becoming more confident.”