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Twitter Reap Rewards in Data Provision to Big Players

Since Twitter came to be not so long ago, people have been divided over it. Some think that it’s frivolous and simply a waste of time, while others seem to just not mind these facts. Either way Twitter has become a big deal with thousands using the service every day. What’s strange about Twitter is that despite its success it seemed remarkably unprofitable, until now.

It has always been a point against Twitter that its structure makes it simply unprofitable despite the numbers using it. However, a recent turn of events has possibly pointed to the contrary. A couple of weeks ago we documented Google’s release of real-time search facilities. As part of their data gathering for their search engine they have signed a deal with Twitter for their data worth an estimated $15m. Furthermore, Microsoft have apparently also forked out an estimated $10m for similar privileges.

While this method of gaining income does not strictly represent a viable business model for constant profits for Twitter, it does constitute a major boon for Twitter as a $25m haul is no small business.

Despite this, there is scepticism of whether Twitter are being paid enough for their data. As they undergo a string of changes and growth there is still a great deal of scepticism over whether Twitter could really remain sustainable as a larger business. With a lack of a truly viable business model Twitter could struggle to see large-scale online expansion in the foreseeable future. Find out more about Twitters Business Model on the Guardian Technology Blog.



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  • Kudo to the post and interesting comment, i also bookmarked your RSS feeds for more updates.

    Total Comment by AliceKay: 1

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