According to recent predictions, Twitter would require a lot of subscribers to grow and keep the platform as demanding as it was originally.
Elon Musk, the new head of Twitter, would require just over 64 million individuals month-to-month at a typical cost of $8 to move the organization from total publication. That would be quite an achievement for an organization with just 238 million monetized users, according to Twitter’s latest public earnings disclosures. It would need the membership of one in four monetizable Twitter users. It has all the earmarks of being arguably more worrisome when compared to YouTube, which has 2.6 billion viewers, 80 million individuals and a decently compelling proposition for both video and music.
According to Twitter’s latest monetary report, the firm procured $1.2 billion in 2022. To produce that amount of money at $8 every month, or $24 every quarter, the business expects nearly 50 million customers. From Musk’s perspective, the organization is losing more than $4 million every day, adding $360 million in costs. By the time you add it all up, the shortage calls for an additional 15 million customers, or something north of 64 million total.
In contrast, Twitter is continuing to raise advertising costs and subscription fees, plus cutting workers’ wages. As a result, around 8,100 staff members have lost their positions in recent days. If Twitter can continue to average $5/customer/quarter in ad revenue per customer, it will require just under 24 million individuals, or one in ten, to follow its $8/month plan . This is not a guarantee given the recent withdrawal of some advertising organizations from Twitter.
On the other hand, Musk has also favored users; as he is cutting costs at Twitter by laying off and laying off employees en masse. In this way, the reported use of the platform has increased and is probably attracting more avid and prospective users. Second, lower costs reduce interest in money, however, they may also limit Twitter’s ability to create, develop and deliver advertising to clients and users. Another problem is that Musk has saddled Twitter with more than $25 billion in the red because of the plan to take Twitter private, requiring interest payments of about $845 million on an ongoing basis.
In short, Musk’s takeover of Twitter is one of the most trending topics these days due to the newly made CEO’s decisions and policies.
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