Following the announcement that its ad sales were 23% down in 2020 compared to the previous year, Twitter is reportedly eyeing a subscription service.
CEO Jack Dorsey said in a conference call that subscriptions could complement its advertising business.
It appears that initial plans involve a small team that is already working on the company’s eCommerce strategy.
Despite a steep decline in ad revenues, Twitter reported a strong rise in daily active users of 34% to 186 million during Q2 2020.
Like other major social media companies, Twitter’s ad business has been affected by the coronavirus crisis. However, as more people were locked down at home using their phones more frequently, the platform gained downloads and users.
It remains to be seen whether its users are willing to pay for an ad-free experience, but Dorsey certainly believes so:
“We do think there is a world where subscription is complementary,” he said. “We think there is a world where commerce is complementary. You can imagine work around helping people manage paywalls as well that we believe is complementary.”
At the same time, the social network is dealing with the fallout from a major hack attack.
A possible expansion into eCommerce mirrors efforts from other social networks like Facebook or Instagram which have been busy expanding their shop features amidst a growing number of consumers ordering online.