Elon Musk plans to double Twitter sales with just a paid subscription



With the acquisition of Twitter, Elon Musk has increased the number of subscribers to Twitter's paid service 'Twitter Blue' to 159 million by 2028, doubling its current sales with paid subscription services alone. It became clear that he was planning to make a forehead.

Inside Elon Musk's Big Plans for Twitter --The New York Times
https://www.nytimes.com/2022/05/06/technology/elon-musk-twitter-pitch-deck.html

Elon Musk thinks he can double Twitter's revenue through subscriptions alone --The Verge
https://www.theverge.com/2022/5/7/23061198/elon-musk-double-twitter-revenue-through-subscriptions-blue

Musk is soliciting the cost of acquiring Twitter from multiple investors and investment companies. According to a document (pitch deck) prepared by Musk to ask these investors for funding, Musk will increase Twitter Blue subscribers to 69 million by 2025 and increase that number by 2028. It seems that it plans to more than double to 159 million people. In addition, Mr. Musk predicts that the number of Twitter users will also increase significantly, reaching 600 million in 2025 and 913 million in 2028. The number of Twitter users reported in 2021 was 217 million.

The only paid subscription service provided by Twitter is 'Twitter Blue,' which allows you to remove advertisements from web pages and use unique functions at the time of article creation. The details of Twitter Blue are summarized in the following articles.

Twitter has started a paid service 'Twitter Blue', which can be canceled or corrected after posting a tweet --GIGAZINE



In addition to Twitter Blue, the pitch deck outlines plans for a mysterious paid subscription service named 'X'. Mr. Musk seems to be planning to acquire 9 million X subscribers by 2023 and 104 million by 2028.

And Musk predicts that sales from two paid subscription services, Twitter Blue and X, will reach $ 10 billion by 2028. In addition, since the total sales of Twitter in 2021 was 5 billion dollars (about 650 billion yen), Mr. Musk calculates that it will be possible to generate double the current sales only with the sales of the paid subscription service. reason.

In addition, Mr. Musk predicts that Twitter's total sales will reach $ 26.4 billion in 2028, so it is calculated that about 38% of sales will come from paid subscription services. It will be. The New York Times predicts that Twitter will make almost all of its remaining sales, around $ 12 billion, from advertising. At the time of writing the article, Twitter's main source of income is advertising, and it is clear from the quarterly financial results how much most of the income depends on advertising.

Twitter's 2021 Q3 sales increased 37% year-on-year to 146 billion yen, the impact of Apple's ATT is less than expected-GIGAZINE



According to media reports, Mr. Musk's pitch deck has plans to raise $ 15 million from the payments business, and this revenue will be $ 1.3 billion in 2028. ) Is expected to grow. It's unclear what Musk's planned 'sales through the payments business' is, but The Verge says 'Musk sees room for expansion in the relationship between Twitter and the payments business.' It may be. '

'Maybe Musk plans to increase sales through Twitter's data license ,' The New York Times said. In 2021, Twitter recorded revenue of $ 57 2 million (about 75 billion yen) in the field of 'data licenses and others'.

However, 'The copyright of the tweet belongs to the user, so if Mr. Musk plans to resell the tweet, Twitter will have to radically change the terms of use,' said The Verge's editor-in-chief. One Nilay Patel points out that there are obstacles to increasing sales with data licenses.




In addition, Mr. Musk seems to plan to hire 3,600 additional employees to build a new service, and it seems that the number of Twitter employees will reach 11,072 in 2025.

Related Posts:

in Web Service, Posted by logu_ii