Stratechery Twitter Has a New CEO; What About a New Business Model?
Nov 30, 2021
The recent shakeup at Twitter with a new CEO raises questions about the platform's future. The historical context of leadership changes sheds light on upcoming challenges. A deep dive into Twitter's market position reveals lessons from its early success and contrasts its text-focused approach with visual platforms like Instagram. The discussion turns towards a potential shift from ad revenue to a subscription model, examining user loyalty and how this could change the business landscape.
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Twitter's Early Success Paradox
- Twitter's initial product was so good it achieved product-market fit immediately, hindering its evolution.
- This lack of iterative development left Twitter without a defined market and expansion strategy.
Contrasting Twitter and Instagram
- Twitter and Instagram, while both broadcast-based, differ fundamentally in their media and user engagement.
- Twitter's text-based, information-focused approach contrasts with Instagram's visual, aspirational nature, impacting advertising effectiveness.
Impact vs. Revenue
- Twitter's cultural impact surpasses its financial performance, influencing news, opinions, and narratives.
- Despite its impact, its ad-based revenue model struggles due to the nature of online information and competition.