- In Q1 2018 Twitter made $575M in advertising revenue
- Twitter had its first profitable quarter in Q4 2017
Twitter’s (TWTR +0.93%) head of content Kay Madati recently announced 30 new video content partnerships. The shows range from live BET and MTV award show coverage to a Turner live program for the NBA Finals. Has Twitter figured out the secret sauce to actually become a profitable business?
Why This Matters: Madati appears to be bringing some #BlackTwitter magic into partnership meetings for the social media giant. In the past two quarters, Twitter reported advertising revenue of $644 million and $575 million respectively. For both of those quarters, video has accounted for more than half of its advertising revenue.
For several years, Twitter has exhibited its ability to shape global events, yet has been unable to live up to its potential to build a strong business. “Twitter is the company equivalent of a lottery winner who never actually learns how to make money, and now they are starting to pay the price,” said Stratechery founder Ben Thompson in 2016.
The inability to make money appears to be changing since the company posted two profitable quarters, following Madati coming onboard in the Fall of 2017. Twitter’s video advertising revenue stands to grow more with video ad spending set to total $18 billion in 2018, according to eMarketer. The question now is whether Twitter will diversify and figure out additional sizable revenue streams it can add to the mix.
What’s Next: Look out for release dates of “Power Star Live” a 30-minute weekly show produced by Will Packer. The show will address social issues and other topics centered around #BlackTwitter.
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