Since Elon Musk assumed control of the social media platform last month, he has made significant, though unclear, announcements about its future.
Musk wants to significantly raise the company's subscription income while expanding "free expression" on the website, which in some circumstances appears to entail re-approving accounts like the one used by former president Donald Trump.
However, Musk's ideas for Twitter may put it at odds with Apple and Google, two of the greatest names in technology.
Conflict is escalating
The likelihood that Musk's improvements would break Apple or Google's app policies in a way that slows down the firm or possibly results in its software being removed from app stores is one of the biggest threats to Musk's vision for "Twitter 2.0."
Already, there are developing tensions. Just last week, Musk voiced his displeasure in a tweet about the app store fees that Google and Apple impose on businesses like Twitter.
Musk stated that app store pricing is clearly too high since iOS and Android have a monopoly on the market. "A 30% hidden tax applies to the Internet." In a subsequent post, he made reference to the Department of Justice's antitrust division, which is ostensibly looking into app store regulations.
He is upset about the 15% to 30% cut that Apple and Google take from in-app sales since this might reduce Musk's expectations for $8 per month in revenue from Twitter Blue subscribers.
The former director of Apple's marketing department Phil Schiller, who continues to manage the App Store, is said to have deactivated his popular Twitter account over the weekend, which had hundreds of thousands of followers.
There are indications that since Musk became CEO, Twitter has already experienced an uptick in hazardous information, endangering the company's apps. Shortly after Musk assumed the title of "chief Twit," a rash of internet trolls and bigots deluged the website with hate speech and racial slurs in October.
The trolls banded together on 4chan before storming Twitter with anti-Black and anti-Jewish slurs. According to the nonprofit Network Contagion Research Institute, Twitter suspended several of the accounts.
Musk's plan to charge for blue verification badges has also resulted in confusion and accounts pretending to be well-known brands and people, which has scared off some advertisers from using the social network, particularly Eli Lilly after a fake verified tweet falsely claimed that insulin would be given away for free.
The app shops became aware.
Yoel Roth, the former head of trust and safety at Twitter, stated in last month's New York Times article: "And as I left the business, the calls from the app review teams had already started."
Revenue from fees and subscriptions
Apple and Twitter have been working together for a while. 2011 saw a significant integration of tweets into the iOS operating system by Apple. Under Apple CEO Tim Cook's account, tweets that serve as official corporate messages are frequently published. On Twitter, Apple has promoted new iPhones and significant launch events.
The partnership, though, seems about to alter as Musk makes efforts to increase the percentage of revenue from subscribers.
In 2021, Twitter reported earnings of $5.08 billion. Hundreds of millions of dollars would wind up going to Apple and Google if half of that comes from subscriptions in the future, as Musk has stated is the plan. This would be a tiny sum for them but may be a huge blow to Twitter.
One of Apple's key guidelines is that all digital material, including gaming coins, avatar clothing, premium subscriptions, and other items, must be purchased through the company's in-app payment system, which charges the user directly. Apple retains 30% of revenues, dropping to 15% for subscriptions after a year, and gives the remaining funds to the developer.
As a member of the Coalition for App Fairness, businesses including Epic Games, Spotify, and Match Group advocate against Apple and Google's regulations. Additionally, Microsoft and Meta have criticized the arrangement in court pleadings and in public comments directed at app retailers.
Musk might choose to follow Spotify's example and offer a reduced $9.99 pricing on the web, where Apple doesn't take a share, and then have people log in to their current accounts inside the app. Users that purchase a Premium subscription through the iPhone app pay $12.99, which essentially pays Apple's costs.
Twitter might also take things a step further, similar to how Netflix completely ceased selling memberships through Apple in 2018.
Musk could charge less for Twitter Blue on the company website and notify his 118 million followers via Twitter that Blue is exclusively available on Twitter.com. It might work and spare Apple from paying any costs.
However, it also implies that Twitter would have to eliminate a lot of alternatives for notifying consumers about the subscription inside the app, where they are most likely to make a purchase choice. Apple also has specific guidelines on the websites that apps can link to when informing users of other payment options.
You cannot join Netflix on the app, according to the Netflix app. We are aware of the trouble.