OAKLAND, California – Twitter said on Tuesday it had acquired an email newsletter service, Revue.
The sale, for undisclosed amounts, is part of Twitter’s effort to compete with other social media companies allowing users to monetize their followers, as the industry publishes. news has a sudden increase in popularity
Twitter has been active in the past two months to lure startups by expanding offerings beyond its core timeline product. In December, they bought Squad, a social video company, and this month they acquired social broadcasting service Breaker to create audio conversation on Twitter.
After advertiser spending plummeted in the early weeks of the pandemic, investors pressured Twitter to develop non-advertising revenue streams. Its CEO, Jack Dorsey, told analysts in July that Twitter is in “a very, very early stage of discovering” alternative revenue streams, including subscription products. .
In November, Twitter executives were discussing buying Substack, a newsletter company that competes with Revue, The New York Times reported. A deal never appeared and Hamish McKenzie, a Substack founder, to speak sales to Twitter “won’t happen.”
Revue was founded in the Netherlands in 2015 and has six employees. For now, it will continue to function as a standalone service, but Twitter says it plans to integrate Revue to “work seamlessly within Twitter”.
Newsletter writers often offer a mix of paid and free options and make money primarily through subscriptions. Platforms like Revue and Substack will reduce those subscription amounts. But while Substack’s reduction was 10%, the Revue was 6%. Twitter said it would cut Revue’s cut even further, down to 5% in an effort to attract new writers.
Kayvon Beykpour, head of Twitter’s product division, said in a blog post announcing the deal: “Twitter is uniquely positioned to help writers and organizations grow their readership. faster and at a much larger scale than anywhere else. “Our goal is to make it easier for them to connect with their subscribers, while at the same time helping readers discover better about their writers and content.”
Social media platforms like TikTok, YouTube, and Snapchat allow their users with the highest reputation to monetize popular content creation. But while these incentives can be highly lucrative and attract a large number of content creators, platforms like Twitter and Facebook have traditionally not provided users with cash to buy content.
By offering users a way to make money, Twitter aims to keep its users active on the platform and add to its revenue.