Elon Musk‘s decision to create changes in Twitter‘s revenue may have created some ‘bad energy’ between the app and big tech companies like Apple and Google.
Shortly after taking over Twitter, Musk announced his plans to vastly increase the revenue of the company by introducing subscription plans for millions of users while opening up the site to more “free speech,”.
In return for having the verified blue check which came for free before the acquisition, Musk has introduced an $8 monthly fee for users who need the verification mark.
The amount also covers other features which are included in the subscription offer now known as Twitter Blue.
The negative side of Musk’s plans shows that it violates the rules of Apple and Google’s App stores which may cause Twitter’s exit from these App stores but if the App stores still chose to accommodate him, the plan may see a part of Twitter’s profits paid out to the App stores.
In 2021, Twitter reported a revenue of $5.08 billion. If Musk’s ideas go well and his proposed revenue stream makes half of that amount, Apple and Google would be entitled to hundreds of millions of dollars — a potentially massive dent on Twitter’s finances.
This has created a cold war between the tech giants as Musk in a recent tweet, had complained about the App store fees Twitter has to pay to Google and Apple.
“App store fees are obviously too high due to the iOS/Android duopoly,” Musk tweeted. “It is a hidden 30% tax on the Internet.” Musk stated.
Apple and Google currently take a 15% to 30% cut from purchases made inside the apps and with this payment, there is a good chance Twitter’s plans to make profit from the $8 dollar monthly fee may be severely hampered.
The situation got a little serious as Phil Schiller, the man who runs the App Store at Apple recently deactivated his verified Twitter account.
According to the former head of trust and safety, at Twitter, Yoel Roth: “Failure to adhere to Apple’s and Google’s guidelines would be catastrophic, risking Twitter’s expulsion from their app stores and making it more difficult for billions of potential users to get Twitter’s services. This gives Apple and Google enormous power to shape the decisions Twitter makes.”
Industry watchers are saying If Schiller is infuriated with how Elon Musk is running Twitter, then there is every reason to be worried about Twitter’s future.