Twitter CEO Elon Musk announced on Friday that the social media platform will take a 10% cut on content subscriptions after the first year, as the company looks to monetize content on the website in a bid to diversify its revenue sources. Musk has been implementing changes at Twitter to increase revenue after the platform saw a decrease in advertising revenue last year.

What Are Content Subscriptions?

Content subscriptions are an increasingly popular way for creators to monetize their content. It allows users to subscribe to the content of their favorite creators for a monthly or yearly fee, giving them access to exclusive content and perks.

Twitter’s Plan to Monetize Content

Twitter’s plan to monetize content is a significant shift for the platform, which has primarily relied on advertising revenue. Musk’s announcement comes after the company’s acquisition of Revue, a newsletter platform that allows writers and publishers to create and monetize email newsletters.

Twitter is now allowing creators to offer content subscriptions to their followers, including long-form text and hours-long videos. In the first year, the company will not take a cut from content subscriptions. However, after the first year, the social media giant will take a 10% cut, which will further reduce to 5% in the third year.

Twitter’s Revenue Strategy

Twitter’s new revenue strategy is to diversify its sources of income and reduce its reliance on advertising. Musk has been implementing changes at Twitter to increase revenue after the platform saw a decrease in advertising revenue last year. This move will also help Twitter compete with other social media platforms that offer content subscription services, such as Patreon and OnlyFans.

Reducing Share of Subscriptions on iOS and Android Platforms

In addition to taking a cut on content subscriptions, Musk also announced that the company’s share of subscriptions on the iOS and Android platforms will go down from 30% in the first year to 15% in the second. This move is in line with Apple’s decision to reduce its share of in-app purchases from 30% to 15% for smaller businesses.

Conclusion

Twitter’s decision to monetize content is a significant shift for the platform and a crucial step in diversifying its revenue sources. While the company faces competition from other social media platforms that offer content subscription services, Musk’s announcement may make Twitter an attractive platform for creators looking to monetize their content.