Revenue streams, refers to different method a company can use to get their incomes. According to these articles, the second most used social media company, Twitter, is lacking its variant of revenue streams. Event hough Twitter’s revenue keeps going up, almost 90% of it has come from advertising. Promoted tweets, trends, and accounts has been the only way twitter is making money, which according to these articles, is a major future threat because the loss of advertising could harm the company’s business and as a whole.
Analysts think that Twitter needs to find new streams of income, maybe through the charging of users to access the site, or maybe to look up to other company such as LinkedIn, where it generates its revenue from three streams; advertising, subscription, and recruiting tools, and Facebook, through its advertising and gaming. Twitter’s only reliability to its tweeting feature, is endangering the company itself as it relies the whole business to the content quality of its users. Diversifying revenue stream is very important for a company, because if one channel stops working, some sort of balance in where the income is coming from, can be generated by other channels.
Sources: http://www.buzzfeed.com/peterlauria/how-twitters-business-model-is-just-like-broadcast-tv-only-w