TWITTER is mulling weather to ask its users to stump for a subscription after a huge fall in advertising income.
The social media company is reliant on making money by targeted ads around big events which have been postponed because of the Covid-19 pandemic.
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The move comes after Twitter was bruised by a hack last week that compromised the accounts of high-profile users.
The company said in April that it had sped up work on long-sought tools to attract advertisers, particularly mobile games and other app makers that are continuing to target consumers stuck at home during the Covid-19 lockdown.
Yet this has failed to compensate for the dive in revenue from advertising big events.
Meanwhile Facebook is expected to turn a profit despite coronavirus pressures.
Analysts estimate on average that Twitter’s ad sales will decline 19.8 per cent in the second quarter year-over-year, according to Refinitiv data.
They expect a loss of nearly £98million ($126m), blowing past the £6.2m ($8m) loss posted in the first quarter.
eMarketer analyst Jasmine Enberg said: “Twitter’s ad business was hit hard by the coronavirus pandemic in March, and it’s likely that losses continued into at least part of Q2.”
The company had aimed to stem losses this year by slashing costs, although the hack may spoil that plan if it forces costly security investments.
Last week, Moody’s warned the incident raised concerns about Twitter’s internal security and possible reputational risks for users.