Creating a premium TweetDeck interface
Twitter (TWTR) has considered developing a premium product around TweetDeck by building advanced features into the interface. The company could then charge people to access those features.
By creating a premium version of TweetDeck, Twitter may unlock another source of revenue outside advertising and subsequently stimulate more growth.
Twitter’s quarterly revenues have been falling since 1Q17. In 3Q17, the company’s overall revenue fell 4.0%, pulled back by an 8.0% decline in advertising sales. As we’ve learned, advertising makes up over 80% of Twitter’s revenue. Advertising sales at Facebook (FB), Alphabet (GOOGL), Yelp (YELP), and Snap (SNAP) all rose in the double digits in 3Q17.
Twitter’s revenue fell short of target in 4Q16
Wall Street expects Twitter to have generated revenue of $686.1 million in 4Q17. Twitter’s revenue of $717 million in 4Q16 missed analysts’ consensus target.
Regardless of what transpires in 4Q17 in terms of revenue growth, Twitter investors will be looking for updates about TweetDeck’s monetization and the company’s other non-advertising revenue efforts.
In 3Q17, Twitter’s outgoing chief operating officer, Anthony Noto, told analysts that the company was still exploring a product related to TweetDeck and that so far, it had only done concept tests.
Back in 1Q17, Noto said that TweetDeck had attracted a loyal audience, which he went on to describe as an “audience of size.” Noto also hinted at the time that Twitter could build more advanced features into TweetDeck and offer them on a paid subscription basis.