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According to the email, Musk expects subscriptions to make up to 50% of revenue. Assuming that Twitter’s revenue is around $5bn, and the subscription is at $8/m
by elorant 4y ago
According to the email, Musk expects subscriptions to make up to 50% of revenue. Assuming that Twitter’s revenue is around $5bn, and the subscription is at $8/month that’s some 26M subscriptions, or 5,7% of its users. I don’t think that a number so high is achievable, unless they pull a rabbit out of their hat.
- datalopers 4y agoYou're making the assumption that annualized revenue hasn't already dropped precipitously due to a loss in advertising dollars, and the bar for subscriptions to reach 50% is rapidly lowering.
- elorant 4y agoEven if you cut the conversion at half it's still too high. Realistically speaking, anything above 1% is highly optimistic.
- greedo 4y agoI'm sure he's expecting growth in both ARPU and total users.
- sangnoir 4y agoAnother way to achieve Musk's target would be to drop ad revenue numbers precipitously until it is equal to subscriptions - a process that may well be under way.
- elorant 4y agoSure, but in this case you'd hardly make any profit. Interests on that $13bn loan alone are somewhere around $1bn annually.
- bart_spoon 4y agoI'm fairly certain they were making a joke.