Prof G Markets: Upheaval at Twitter, Airbnb and Uber Earnings, and the Chinese Markets

Leadership Changes

Scott Galloway and Ed Elson discuss the immediate changes Elon Musk made to Twitter’s leadership. Musk fired several top executives, including CEO Parag Agarwal and CFO Ned Segal, and proposed mass layoffs and new features like video paywalls and bringing back Vine 1. Scott believes these moves inject much-needed innovation into Twitter, but he criticizes the one-size-fits-all approach to charging for blue check verification 2.

Just coming up with new innovative ideas and trying to jab the corpus with a big epi pen or shot of adrenaline is probably good for the company right now.

--- Scott Galloway

Scott suggests a more nuanced pricing strategy, tailored to the value different users bring to the platform 2.

   

Monetization

Scott explores Twitter's monetization strategies, emphasizing the potential of subscription models and paywalled content. He argues that if 10% of Twitter's daily active users paid an average of $10, it could generate an additional $2.5 billion annually 3. Scott also sees an opportunity for Twitter to compete with OnlyFans by offering adult content through seamless integration and micropayments 3.

I think adult content is a huge business. OnlyFans is a great business, and it's kind of a natural fit for a social network like Twitter.

--- Scott Galloway

Scott criticizes the flat $8 fee for blue check verification, advocating for variable pricing based on user value and follower count 4.

   

Verification Debate

The debate over charging for blue check verification is another focal point. Scott acknowledges the status symbol of the blue check but argues that the $8 fee is arbitrary and should be adjusted based on the user's economic value to Twitter 5. He suggests that some users could be charged significantly more, while others, like nonprofits and journalists, might pay less or nothing at all 6.

I think almost everyone who has a blue check should pay for it, but the one-size-fits-all approach doesn't make sense.

--- Scott Galloway

Scott also notes that charging for verification could help reduce bots, although he questions the effectiveness of this strategy 5.