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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AliceKay
23 Dec, 2009
Kudo to the post and interesting comment, i also bookmarked your RSS feeds for more updates.
Total Comment by AliceKay: 1