Twitter Inc. (NYSE:TWTR) has confirmed the company is currently exploring an upgraded version of its Tweetdeck interface that will cost users $20 per month.
Tweetdeck’s current features – like scheduling tweets, desktop notifications, and the ability to customize the interface – will remain free, while the premium version will offer perks like signaling tools, alerts, breaking news, activity analysis, and further customization options.
The new service will be marketed towards folks who use Twitter extensively, like media companies, journalists, and organizations with a large social media arm.
One of the biggest criticisms Twitter has faced over the last year is the ineffectiveness of its ad-targeting programs. Many users have reported seeing ads that were clearly mistargeted. This, along with other factors, have led to bearish sentiment surrounding Twitter stock.
In its most recent quarter, Twitter posted revenue of $717 million, versus analyst expectations of $740 million. In addition, it told investors it expected to earn between $75 and $95 million in EBITDA in its next quarter, far below Wall Street’s expectations of $191 million.
It's obvious Twitter needs additional revenue streams, and creating something that helps power users is a suitable place to start. They’re the most likely to pay.
Analysts have also said Twitter should make other minor changes, including giving users the ability to edit tweets, and making it easy to use more than 140 characters. An expansion of Tweetdeck shows the company is paying attention to criticisms.
Twitter shares rose 2.3% in early afternoon trading on the New York Stock Exchange, increasing $0.34 each to $15.27. The stock is only marginally higher than its 52-week low of $13.73.
