The former chief executive officer of Twitter, Dick Costolo, has affirmed that the microblogging firm is ‘extraordinarily resilient’ despite all the problems the company is facing. Costolo who is now a partner at Index Ventures was speaking in an interview with CNBC.
“The value of the network and the value of the immediacy of news dissemination and correcting things that are said on the news that are wrong is incredible and unrivaled,” said Costolo.
The former Twitter CEO also expressed confidence in the current leadership of the social media company saying that it was steering the firm in the proper direction. Despite the criticism that has been levelled against social networks such as Twitter over the proliferation of fake news, Costolo defended Twitter saying it was one of the platforms where false information was easy to debunk.
Costolo’s remarks comes in the wake of suggestions by Wall Street that Twitter considers a subscription model. The suggestion has, however, not been embraced by Twitter’s chief operating officer and chief finance officer, Anthony Noto, who said that for the foreseeable future the advertising model remained the only compelling one. Speaking at the Code Conference on Thursday Noto added that the value proposition that the social media company was offering to advertisers continued to remain strong.
The Twitter COO and CFO cited the fact that company had generated $2 billion in advertising revenues and had also registered growth in four consecutive quarters following a stagnation period in active user numbers as a sign of the microblogging platform’s potential. However, Noto pointed out that Twitter was still open to the idea of introducing premium services to its Tweetdeck platform though he didn’t say anything specific.
Analysts based at MoffettNathanson, a research firm, had earlier released a report which recommended that Twitter adopt a subscription model. While the report noted that such an approach could turn out to be highly unpopular and would definitely lead to a drastic reduction in the number of users on the platform, it would nevertheless generate the same revenues that Twitter is generating today. These revenues would also be recurring and less seasonal or choppy the way ad revenues are.