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Twitter Launches Its First Paid Subscription Service

Twitter's new Blue service will initially be available in Canada and Australia, and includes a function that gives users up to 30 seconds to revise Tweets before they go live.

Twitter  (TWTR) - Get Report shares rose Thursday after the social media platform announced the beginning of its first paid subscription service.

“Starting today, we will be rolling out our first iteration of Twitter Blue in Australia and Canada,” the company said.

The service includes Undo Tweet, which gives users up to 30 seconds to revise Tweets before they go live; bookmark folders to organize saved content; and Reader Mode, which makes long threads easier to read.

Twitter said it added the features in response its users’ requests. It did not indicate when the service would be available to U.S. users.

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Twitter Blue will cost C$3.49 (US$2.88) per month in Canada and A$4.49 (US$3.44) in Australia. The service will cost $2.99 per month in the U.S. according to Reuters, citing app details in Apple's App Store. 

Twitter shares recently traded at $58.29, up 1.98%. They have climbed 24% in the past six months amid heavy usage of Twitter during the pandemic. That compares to a 14% gain for the S&P 500 over the same time period.

Last month, Twitter said it would acquire Scroll, an ad-free news reader startup, to build its paid-subscription service model.

Also in May, Twitter said it would launch a tip-jar that enables its users to financially support creators.

In April, Twitter posted first-quarter results that beat analysts’ forecasts but reported slower user growth than some competitors.

The company registered profit of $68 million, or 16 cents a share, in the quarter, above the FactSet analyst consensus of 14 cents. Revenue totaled $1.04 billion, up 28% and above analysts’ estimate of $1 billion.

What left analysts less enthused was Twitter’s user tally, which rose 7 million from the fourth quarter to 199 million, but fell shy of forecasts.