Subscription Model Pivot

Based on the transcript discussion, Twitter/X is planning to transition to a fully subscription-based service model, moving away from the traditional free, ad-supported platform.

Key Points:

• Platform Transition:

  • Moving from free service to paid subscription model
  • Eliminating free tier completely
  • Planned implementation in early 2024

• Current Business Performance:

  • Operating at near break-even cash flow
  • Projecting profitability by early 2024
  • Claims 90% of top 100 advertisers have returned
  • Approximately 1,500 advertisers total have returned to platform

• User Base:

  • Current daily active users: "200-250 million" (down from 237 million previously reported)
  • Unclear retention strategy for transition to paid model
  • No specific details provided on expected user loss from subscription transition

• Revenue Strategy:

  • Complete shift from ad-supported to subscription-based model
  • Monthly fee requirement for all users
  • No specified pricing structure mentioned

Note: Many details about implementation and strategy were unclear in the interview, with the CEO appearing to be unaware of some aspects of the planned transition.