That said, while that brand recognition and reach is scarce and hard to reproduce, it's not necessarily something anyone would want to pay a lot of money for. How would anyone monetize it? Twitter can't really control how many non-users see a tweet.
That said, while that brand recognition and reach is scarce and hard to reproduce, it's not necessarily something anyone would want to pay a lot of money for. How would anyone monetize it? Twitter can't really control how many non-users see a tweet.
Problem #2: It's expensive to support millions of users who post shit
Problem #3: Twitter's revenue base is too small for its cost base
Solution: Eliminate advertising and charge $20 per 1000 tweets. Free to read, costs a tiny bit to tweet.
People who post shit will disappear. People who have an audience and something to say won't bat an eye at this low cost.
If this weeds out 80% of the shit while keeping 80% of the good stuff, Twitter will simultaneously shrink their costs while growing revenues to become a sustainable business.
With this model, Twitter is a $1 billion per year profitable business [2] with a much higher signal-to-noise ratio. [3]
Improve the signal-to-noise ratio and Twitter becomes THE place to be for all kinds of communities. That means a return to growth and higher rates per 1000 tweets.
[1] https://en.wikipedia.org/wiki/Sturgeon%27s_law
[2] Start with 200 billion tweets per year. 90% are shit, and 80% of these go away, leaving 36 billion shitty tweets. 10% are good, and 80% of these stay, leaving 16 billion good tweets. 52 billion tweets in total, monetized at $20 per thousand is a billion bucks a year.
[3] Signal-to-noise ratio before is 1:9, after it's 1:2.
Is it? I always assumed all their money was plowed into moonshot development to try to find something, ANYTHING to make a billion dollar company (stuff they throw away within 12 months, like Twitter #Music)
Just supporting their core functionality could be done with a fraction of the workforce, and could probably be profitable (although it would never satisfy the investor valuation)
You could add a "tip jar" to allow followers to support someone by buying Tweets for them, so that high-signal accounts would seldom have to pay that fee.
If you disagree and feel strong enough about it to do that, post a comment like nowprovision did.
I'm only slightly not serious about this :-)