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Twitter Business Model and the End of Freemium

7 points by tomordonez 12y ago

shard972 12y ago
I don't user twitter, what is it about?
pedalpete 12y ago
I don't see the connection between "Twitter had a net loss" to "Twitter is going to start charging for accounts". They managed $250 million last quarter without charging users directly. Charging users directly is could be a very threatening thing to their business. Would they take that risk to increase revenues by 30% when they could optimize and current revenue streams and introduce other revenue streams which have a much lower risk than charging users directly?
volaski 12y ago
The link bait title drew me in but the content is just a poorly written rambling that i don't even understand. What do you even mean when you say "Freemium"?
huu 12y ago
Is this factual? Or just conjecture? I can't tell from the content of the post itself, but a quick Google search revealed nothing.
deleted 12y ago
[deleted]
dk8996 12y ago
This post is not only badly formatted but also way off. Twitter, like Facebook, has a gold mine of data that they haven't started monetizing. Not only do they know good amount of personal data based on your profile, who you follow, what you tweet but also where you go on the web (those share buttons "call back to Twitter"). All of this data is very powerful and is basically a gold mine wait to be sold/packaged.
cordite 12y ago
Considerable link bait. But their costs aren't just servers and such. They have loads of staff-even to the point of some claiming Twitter is hoarding the smart and talented folk from making competitors and such. Didn't they also have a big IPO to fall back on while they figure out their new scale? --- Personally, I would never pay $50 a year for something I only add to 3-5 times a month, and view once every other day. Though @steveklabnik would probably have a different valuation of his twitter usage and experience.
Grue3 12y ago
The moment Twitter starts charging users, everyone will jump ship. Then it's just network effect in action: less users -> less incentive to stay (and pay money).

7 points by tomordonez 12y ago

I don't user twitter, what is it about?

I don't see the connection between "Twitter had a net loss" to "Twitter is going to start charging for accounts". They managed $250 million last quarter without charging users directly. Charging users directly is could be a very threatening thing to their business. Would they take that risk to increase revenues by 30% when they could optimize and current revenue streams and introduce other revenue streams which have a much lower risk than charging users directly?

volaski 12y ago

The link bait title drew me in but the content is just a poorly written rambling that i don't even understand. What do you even mean when you say "Freemium"?

huu 12y ago

Is this factual? Or just conjecture? I can't tell from the content of the post itself, but a quick Google search revealed nothing.

deleted 12y ago

[deleted]

dk8996 12y ago

This post is not only badly formatted but also way off. Twitter, like Facebook, has a gold mine of data that they haven't started monetizing. Not only do they know good amount of personal data based on your profile, who you follow, what you tweet but also where you go on the web (those share buttons "call back to Twitter"). All of this data is very powerful and is basically a gold mine wait to be sold/packaged.

cordite 12y ago

Considerable link bait. But their costs aren't just servers and such. They have loads of staff-even to the point of some claiming Twitter is hoarding the smart and talented folk from making competitors and such. Didn't they also have a big IPO to fall back on while they figure out their new scale? --- Personally, I would never pay $50 a year for something I only add to 3-5 times a month, and view once every other day. Though @steveklabnik would probably have a different valuation of his twitter usage and experience.

Grue3 12y ago

The moment Twitter starts charging users, everyone will jump ship. Then it's just network effect in action: less users -> less incentive to stay (and pay money).