We already know that Tesla and SpaceX CEO Elon Musk plans to cut jobs and costs over at Twitter, if and when the acquisition is complete. Now, according to a new report from The New York Times, the world’s richest man aims to quintuple (5x) Twitter’s revenue by 2028.
According to the report, Musk recently had a word with Twitter investors where he outlined his plans for the social media company’s financial targets moving forward, with a target of $26.4 billion USD ($34.2 billion CAD) to be achieved by 2028, compared to the company’s $5 billion USD ($6.4 billion CAD) revenue in 2021.
Musk plans to achieve the targets primarily by cutting down the reliance on generating revenue through advertising. Up until now, 90 percent of Twitter revenue came through advertising, and Musk wants to bring this down to 45 percent. On the other hand, subscriptions would become an integral revenue driver, according to Musk. “In 2028, advertising would generate $12 billion in revenue and subscriptions nearly $10 billion, according to the document. Other revenue would come from businesses such as data licensing,” reads the report.
This adds credibility to a recent report that said commercial and government Twitter users might soon have to pay to tweet.
The report also suggests that in addition to Twitter Blue, the social media company will launch a new subscription tier, though nothing about it was mentioned. Musk said he’s aiming for the new tier to rack in nine million sign-ups in the first year, with a target of 104 million sign-ups by 2028.
Additionally, Twitter’s payment business, which includes tipping and shopping, will be expanded to generate an estimated revenue of $15 million USD (about $19.5 million CAD) by next year, and $1.3 billion USD (about $1.69 billion CAD) by 2028.
With all of the above changes, Musk expects to increase the average revenue per user from $24.83 USD (about $32.27 CAD) as of 2021 to $30.22 USD (about $39.26) by 2028.
These are big promises, though Musk’s commitments as CEO of his other two companies are already bearing major fruits, so it wouldn’t be prudent to doubt him. On the other hand, Musk has no prior experience running a social media company, and since the news came out about him taking over Twitter, and his stance about free speech on the platform, users have been flocking away from the social media service.
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Source: The New York Times