Twitter’s video deals mean it’s giving up on business model innovation

So says Ben Thompson in his newsletter today:

This is why Twitter’s increased focus on securing these video deals feels like such an admission of failure: the company is basically admitting that, despite the fact it contains some of the best content — given to it for free — in the world, it simply can’t figure out how to make that into a business, so instead it is (presumably) paying to create content that it can monetize more easily. The Bloomberg deal, which was first reported on Sunday, is particularly poignant on this point: Twitter is (again, presumably) paying for content about business and financial markets even as the most valuable business and financial market information is being posted for free on Twitter. That the company cannot build a business on that fact is certainly a disappointment.

You’ll have to subscribe to read the rest. For $100 a year, it’s worth it.

Meanwhile, some stats from Sara Fischer at Axios:

In total, Twitter has closed over 40 live stream partnerships around the world with sports leagues, media companies, etc. The company increased live programming by 60% last quarter and aired roughly 800 hours of live content reaching 45 million viewers. Of those hours, 51% were sports, 35% were news and politics, and 14% were entertainment. Above all, Twitter says 55% of its unique viewers are under the age of 25, a stat that directly competes with Snapchat’s coveted millennial demographic.

There’s also an extensive list of the video partnerships and shows to be broadcast in Twitter.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s