Re:Musk’s Twitter Purchase Was a Leveraged Buyout
by bagels on Tuesday November 08, 2022 @04:24AM
(#33517434)
I know I'm a few days late, but, users that can pay $8/mo for twitter bring in more ad revenue per user than those that can't.
Average ad revenue on social networks for US people is about 10x the worldwide average.
This there are two confounding problems with paid Twitter:
1) If you let users that can afford the $8/mo pay to not see ads, you will lose more ad revenue than you gain in subscription fees.
2) The people that are bringing in less ad revenue than a subscription probably won't subscribe.
Average ad revenue on social networks for US people is about 10x the worldwide average.
This there are two confounding problems with paid Twitter: 1) If you let users that can afford the $8/mo pay to not see ads, you will lose more ad revenue than you gain in subscription fees. 2) The people that are bringing in less ad revenue than a subscription probably won't subscribe.