Twitter is exploring extra ways to make money from its users, by considering a subscription model, CEO Jack Dorsey said on Thursday.
The move comes as Twitter suffers a sharp decline in its core advertising business, according to CNN.
“You will likely see some tests this year” of various approaches, Dorsey told analysts on an investor call held to discuss the company’s second-quarter earnings results.
Dorsey said he has “a really high bar for when we would ask consumers to pay for aspects of Twitter,” but confirmed that the company is seeking to diversify its sources of revenue in what are “very, very early phases of exploring.”
Earlier this month, rumours flared about a paid Twitter option after the company posted a job opening focused on building a subscription platform, codenamed “Gryphon.” Twitter’s stock surged at the time, signalling investor appetite for the company to find new revenue streams.
Shares on Twitter rose 4% in early trading Thursday following the earnings results.
Like its rival social networks, Twitter has focused on offering a free service and making money by allowing brands to target ads to its millions of users.
“We want to make sure any new line of revenue is complementary to our advertising business,” Dorsey said. “We do think there is a world where subscription is complementary, where commerce is complementary, where helping people manage paywalls we think is complementary.”
Twitter’s growth plans are under close scrutiny as many advertisers pull back due to the pandemic. On Thursday, Twitter reported second-quarter ad revenues of $562 million, a 23% decrease compared to the same quarter a year ago.