What We Know About Twitter’s Subscription Model So Far

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Twitter  (TWTR) - Get Report hinted to shareholders on Thursday that it's looking into the possibility of a subscription model.

"We are also in the early stages of exploring additional potential revenue product opportunities to complement our advertising business. These may include subscriptions and other approaches," said Twitter.

And here's what Twitter CEO Jack Dorsey told investors during the company's second-quarter investor call: “We want to make sure any new line of revenue is complementary to our advertising business. We do think there is a world where subscription is complementary, where commerce is complementary..."

Twitter reported Q2 earnings on Thursday with heavy losses in advertising revenue, which it attributed to the coronavirus pandemic. However, Twitter’s daily users surged to 186 million, up 34% from a year ago.

The growth was “primarily driven by external factors, such as continued shelter-in-place requirements for many people, and increased global conversation around the Covid-19 pandemic and other current events,” said Twitter.

On July 15, the Twitter accounts of high-profile individuals were compromised in a cryptocurrency scam, causing Twitter shares to sink. In total, about $110,000 worth of payments were transacted by individuals tricked by the hack.

The accounts of Tesla CEO Elon Musk, Amazon CEO Jeff Bezos, Microsoft founder Bill Gates, Former New York City Mayor Mike Bloomberg, Former President Barack Obama, Berkshire Hathaway Chairman Warren Buffett, and other high-profile individuals were all compromised.

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