Elon Musk announces new, more expensive plan to hide ads on Twitter – Business

Twitter owner Elon Musk announced on Saturday in a series of announcements on his social network that the latter will soon offer a “more expensive subscription that will allow you to no longer have advertisements”.

It would bea radical change to the economic model from Twitter, which has so far relied on targeted advertising for revenue, ahead of the launch of a first paid subscription in mid-December. This new zero-ad subscription will be part of a wider strategy, announced by the American billionaire via a tweet, to revise the presence of advertising on the social network. “Ads are too frequent and too large on Twitter. We will act on both of these parameters in the coming weeks,” wrote Mr. Musk.

The social network faces major financial difficulties since the takeover by Mr. Musk at the end of October. The company initially laid off about half of its 7,500 employees. At the end of December, the man who also heads Tesla and SpaceX had estimated that Twitter could achieve a turnover of about three billion dollars this year, which would correspond to a decrease of 41% compared to 2021.

The various decisions made by Mr. Musk have actually scared away a significant part of the main advertisers, frightened by the return to the platform of people who were originally banned for racist or conspiratorial comments. On Wednesday, the company held an auction that offered no less than 631 lots of furniture and decorative objects, including a giant light installation representing the famous blue bird, sold for $40,000.

To compensate for the exodus of advertisers, the multibillionaire, who explained that he had to “cut costs like crazy” to avoid bankruptcy, is counting on subscription formulas, starting with Twitter Blue, offered between $8 and $11 a month depending on the subscription mode , and therefore this new offer comes without advertisements. For about a month, Elon Musk is also looking for his successor at the helm of the San Francisco company after a poll showed 57% of the roughly 17 million participating users favor his departure.

It would be a radical change in the business model from Twitter, which has until now relied on targeted advertising to generate revenue before launching a first paid subscription in mid-December. This new zero-ad subscription will be part of a wider strategy, announced by the American billionaire via a tweet, to revise the presence of advertising on the social network. “Ads are too frequent and too large on Twitter. We will act on these two parameters in the coming weeks,” wrote Mr. Musk. The social network has faced serious financial difficulties since its takeover by Mr. Musk at the end of October. The company initially laid off about half of its 7,500 employees. At the end of December, the man who also heads Tesla and SpaceX had estimated that Twitter could achieve a turnover of around three billion dollars this year, which would correspond to a decrease of 41% compared to 2021. decisions taken by mr. Indeed, Musk has scared away a significant portion of the main advertisers, alarmed by the return to the platform of people who were originally banned for racist or conspiratorial comments. On Wednesday, the company held an auction that offered no less than 631 lots of furniture and decorative objects, including a huge light installation representing the famous blue bird, sold for 40,000 dollars. To compensate for the flight of advertisers, the multi-billionaire, who explained, that he had to “cut costs like crazy” to avoid insolvency relies on subscription plans, starting with Twitter Blue, offered between $8 and $11 a month depending on the mode subscription, and so this new offer to come without advertising. For about a month, Elon Musk has also been looking for his successor at the head of the San Francisco company, after a poll showed that 57% of the roughly 17 million participating users favor his departure.

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