Twitter Plans Ad-Free Subscription Service

Elon Musk, the new owner of the social network, just made this announcement without giving further details.

Elon Musk is revamping Twitter, the social network he has owned since October 27 in exchange for a check for $44 billion.

The billionaire's goal is to make the microblogging website profitable. The firm lost $221.4 million in 2021, the most recent year of full reporting.

He just announced that he plans to launch an ad-free version of Twitter. This version will be a kind of subscription service with a higher price than Twitter Blue, the current subscription service.

Blue costs $7.99 for users subscribing via the internet or by downloading the app via Google Play. But for users who own iPhones and subscribe via the App Store, the price is $11. This difference is due to the fact that Apple charges a high commission on in-app purchases.

"Ads are too frequent on Twitter and too big," Musk said on Jan. 21. "Taking steps to address both in coming weeks.”

He therefore wants to review the size and frequency of ads, but how and when the changes will happen, the Techno King, as he's known at Tesla, did not provide details.

He then said: "also, there will be a higher priced subscription that allows zero ads."

Twitter Lifts a Three-Year Ban on Political Ads

Again the billionaire did not provide any additional information. Nothing for example on the launch date.

These announcements are part of Musk's efforts to diversify Twitter's revenue streams. The company is facing an exodus of advertisers who are worried about the platform's content management policy. 

The tech tycoon who describes himself as a "free speech absolutist" believes that any tweet is acceptable on the platform as long as it does not violate the law. This laissez-faire approach has led many brands to stop promoting their products and services on social media.

Ads accounted for 91% of Twitter's revenue in the second quarter of 2022, the latest period for which data is available. Musk took the firm private.

A few days ago, Twitter announced an about-face on the subject of politics. The firm lifted its 2019 ban on political ad.

"We believe that cause-based advertising can facilitate public conversation around important topics," the company said on Jan. 3. "We're relaxing our ads policy for cause-based ads in the US. We also plan to expand the political advertising we permit in the coming weeks."

"Moving forward, we will align our advertising policy with that of TV and other media outlets. As with all policy changes, we will first ensure that our approach to reviewing and approving content protects people on Twitter. We'll share more details as this work progresses."