Video via Bloomberg Technology. All rights reserved.
Twitter has revealed its first quarter earnings last week. This video discuss this company’s dilemma about business value – slight audience size growth but continuous revenue stagnation.
While a few days later, this company continuously unveiled its plans for in-platform streaming video service, announcing partnerships with more than a dozen publishers and content providers, from Bloomberg, to Live Nation, and to the NFL. Twitter is undoubtedly hoping that all of this video-centered strategy will help pull in new users and retain the users it already has by increasing their timespan on its platform – as well as boosting advertising revenue.
So why is a platform best known for shortest text content expanding into long and longer video content? Can the strategy of video streaming save this struggling business?
Undoubtedly, streaming video can be extremely lucrative market, and the deals among Twitter and its new-announced partners seems quite reasonable. Digital publishers and content providers are eager to distribute their videos as widely as possible, and Twitter need all the help of videos it can get to grow its revenue. Over last few years of covering sports and politics, now Twitter is set to expand on the video strategy with more content for news and entertainment. This social network platform is turning itself into a hub for live TV, eagerly to seize users especially the young who tend to have large consumption on video content.
Personally, as a millennial and enjoying watching streaming videos of live events, I can see the potential of pulling in users and boosting traffic for this platform by expanding its video content coverage. However, generating ads revenue is another game. As Twitter is trying to become a TV streaming company, the advertising strategy should be no longer the same as a social network company. As a social network platform, it generally get free user generated content and sell ads related to that. TV streaming platform, however, needs to pay for content from providers and then sell ads around it. The pain point is that getting content is hard and expensive, just like being doubted in the Bloomberg video that people are concerning Twitter even doesn’t have the financial means to compete in this crowded filed with other players like Facebook and YouTube.
But it can’t be denied that, for advertisers, the content that Twitter is going to cover and the user base this platform can reach are still of value. Don’t forget, millennials who like visual storytelling are so motivated to go to a platform as long as it provide expected content. And advertisers are always want to reach as many audience as possible.
As the industry and business trends keep changing, we’ve witnessing the swap and merging between social network platforms and video platform. What’s next?