Twitter Inc CEO Elon Musk announced on Friday that the social media platform will now take a 10% cut on content subscriptions after the first year, as the company looks to diversify its revenue streams. This comes after Musk announced earlier this month that users of the platform will be able to offer subscriptions to their followers for long-form text and hours-long video content.
The company will not take a cut for the first 12 months on content subscriptions but will begin to do so after this initial period. Musk has been making changes to Twitter to boost revenue after the platform saw a decline in advertising income last year leading up to his $44 billion acquisition that closed in October.
Furthermore, Musk stated that the company's cut from subscriptions on iOS and Android platforms will decrease to 15% in the second year from the initial 30%. This move by Twitter is aimed at monetizing the content on its website and diversifying its revenue sources.
This latest announcement is expected to draw in more content creators and users to Twitter, as it provides them with a new way to monetize their content and grow their audience. It remains to be seen how this change will impact the overall revenue of Twitter, but it is clear that the company is focused on finding new ways to generate income and keep up with its competitors.
