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Published Jul 30, 2020

Less is More

Scott Galloway delves into the antitrust drama surrounding big tech with insights from expert Tim Wu, scrutinizes Twitter's potential shift to subscription-based models amidst monetization hurdles, and explores the pandemic-driven evolution of education through microcertification and online learning innovations.
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  • Monetization

    Twitter faces significant challenges in monetizing its user base, despite a rise in user numbers and engagement. highlights that while Twitter's user base grew by 12% and usage increased by 34%, revenue fell by 19%, indicating a broken business model 1. He suggests a shift to a subscription model, where users with varying follower counts pay different fees, could change the narrative and attract investment 1.

    If it just gets to 1% of the revenue, but it's growing faster than the core business, the markets will respond.

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    Scott believes that even a small success in subscription revenue could significantly boost Twitter's stock value 1.

       

    Startup Dilemmas

    Startups often face financial struggles and strategic decisions, as illustrated by Twitter's journey. recounts his own experience with Twitter stock, noting the volatility and challenges in predicting its success 2. He emphasizes that achieving even modest subscription revenue could propel Twitter's stock to new heights 2.

    Twitter just gets to $10 million a quarter in subscription revenue. Shows any kind of mojo for this. And boom.

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    This reflects the broader dilemma startups face in balancing immediate financial pressures with long-term strategic goals.

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