Twitter has revised the pricing for Twitter Blue and also offered an annual plan. This is the latest in the long list of changes that the company’s billionaire owner Elon Musk has pursued over the last couple of months.
The company has increased the price for a Twitter Blue subscription on Android to $11 which matches the pricing it was offering on iOS. The monthly subscription is $8 in case one takes a web subscription. Also, the company would offer an $84 annual subscription plan which is available only on the web and not the app.
The pricing strategy is an apparent bid to bypass the app store fees that Apple and Alphabet charge. Last year, Musk feared that Apple was preparing to boot out Twitter from the app store. He has also been critical of the play store charges.
However, after Musk met Apple CEO Tim Cook, Musk said that Apple never considered removing Twitter from the app store. This was yet another U-turn for Musk who has changed his positions on several aspects.
Musk walked out of the deal to acquire over the alleged fake accounts on the platform. However, amid mounting legal pressures he agreed to buy the company at the original terms.
It’s now widely accepted that Musk wanted to negotiate the deal at a lower price as he was having “buyers’ remorse.”
Musk Has Made Several U-Turns in the Past
In the past also, Musk has made many U-turns including when it comes to cryptocurrencies. In 2021, Tesla started accepting bitcoins as payment for cars and also invested money in them.
Soon enough, the company stopped accepting them as payment as Musk doubted their green credentials. Earlier this year, the company sold most of its bitcoins while Musk said last year that it won’t sell them.
Even on dogecoin, he has changed his stance and the self-proclaimed dogefather called it a “hustle” at one point in time. He also did not accept dogecoin as payment for Tesla calls despite a Twitter poll where the majority voted in favor. Dogecoin has seen some upwards traction though since Musk acquired Twitter. You can also buy dogecoin with PayPal.
Twitter Blue’s New Pricing Could Eat into App Store Revenues
App stores have been cash cows for both Apple and Alphabet as they generate hefty margins. However, several app developers have complained of high fees and pointed to the alleged monopoly.
Incidentally, Apple would allow iPhone users in Europe to download apps through third-party app stores. While it would be a hit on Apple’s Services revenues, which have anyways sagged over the last couple of quarters, analysts don’t see a major impact and believe that the majority of iOS users would stick with the official app store.
Meanwhile, with Twitter Blue Musk might hope to revive the company’s earnings amid reports of a mass exodus of advertisers from the platform. Since Twitter is no longer a public company we won’t get its financials anymore.
However, Musk previously said that Twitter is losing $4 million daily and said that the company’s bankruptcy cannot be ruled out.
Twitter Has been a Mess Since Musk Took Over
It has not even been three months since Musk took over Twitter and it has been quite a mess at the social media company. The mercurial Musk fired over half of Twitter staff. The company also fired many contractors unannounced.
Twitter also faced lawsuits for not paying rent on some of the offices. It has also auctioned several items in what looks like an attempt to raise cash. Reportedly, several Twitter employees carried their own toilet papers to the office after the company fired janitors.
Overall, Twitter now seems in a bigger mess than it was before Musk took over. From advertisers pulling back to non-payment of dues, troubles have only increased for the social media company since Musk acquired it and took it private.
Twitter Blue’s success meanwhile is critical for the company as its annual interest expense is reportedly in excess of $1 billion, thanks to Musk’s debt-fuelled acquisition.
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