Twitter’s reach doesn’t translate to revenue

Twitter’s role as a megaphone for the president, countless celebrities and businesses hasn’t attracted regular people to the service, not in the way Facebook has, or even Instagram and Snapchat. The company says it streamed more than 600 hours of live premium video from sports, news and entertainment events during the quarter, drawing 31 million unique visitors. Twitter has dismissed such speculation, and insists it is focused on making the service safer, differentiating it from rivals and becoming profitable for the first time this year. While Dorsey and Twitter have taken major steps recently to address some of users’ biggest concerns, including clamping down on hate speech and abuse, this has yet to make a notable difference in drawing new users. “Just like Myspace, perhaps Twitter does not what to ‘change the formula’ for fear of losing its unique simple user experience,” Mark Skilton, a professor at Warwick Business School, wrote in an email. Twitter’s revenue growth has stalled for more than two years, and the company is cutting costs and shuffling executives. Dorsey, the Twitter co-founder who rejoined the company in late 2015 with hopes of reviving it, called 2016 a transformative year as we reset and focused on why people use Twitter: Even before he was elected president, Donald Trump has used Twitter like no other world leader, firing out broadsides and accolades in rapid succession and generating headline after headline with 130-word missives.

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