How will a new CEO change Twitter?

May 12, 2023

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How will a new CEO change Twitter?

So, how will a new CEO change Twitter, considering Elon Musk’s reduction of over 80% of Twitter staff since he assumed control in October?

It’s uncertain at this stage what specific transformations await the platform.

However, it’s important to mention that with Musk retaining his positions as Executive Chair and CTO, it’s improbable that there will be a significant departure from his initial vision for the application.

Nevertheless, the appointment of a new chief executive will bring about a substantial shift, and indications from rumored candidates provide strong hints about the probable future direction.

As reported by The Wall Street Journal, Linda Yaccarino, the current head of advertising at NBCUniversal, is slated to assume the position of CEO at the app, while Musk will step down in six weeks to accommodate the new chief.

Yaccarino has been employed at NBCUniversal for more than ten years and has played a pivotal role in developing the platform’s advertising sector, notably spearheading the creation of its ad-supported streaming service, Peacock.

In a Twitter context, this is the primary factor to consider. Elon Musk has emphasized on multiple occasions that his vision for Twitter does not align with that of a typical social media platform.

Instead, he envisions Twitter as a rival to traditional news organizations, striving to become the most reliable and precise source of information regarding global events.

Musk has further emphasized the app’s strong emphasis on video as a central objective for the future, with the ambition of eventually rivaling YouTube.

The aim is to attract renowned content creators and persuade them to exclusively share their content on the app.

In addition, the recent revelation that Tucker Carlson will soon debut an exclusive show on Twitter adds to the indication that Musk is striving to develop his own streaming service within the app.

The focus is on offering exclusive programming that will ideally entice a larger audience and attract more creators.

In this scenario, Yaccarino is an ideal candidate due to her previous experience in building an ad-supported streaming service, which currently boasts over 20 million subscribers.

While Peacock is still operating at a loss, the financial investment required on Twitter could potentially be lower.

This is because Twitter won’t be primarily focused on producing premium programming for the service but rather on providing creators with opportunities to earn revenue through ad sharing, with minimal investment from Twitter itself.

So, what does this imply for Twitter?

There will be a significant increase in video content, a greater emphasis on exclusive content, and a stronger push to position the app as the top destination for up-to-date news coverage.

I anticipate that, at some point, the intention would be to give video a more prominent role in the user interface, highlighting the expanding range of programs. Musk aims to position Twitter not as a subsidiary of traditional outlets, but as a genuine alternative.

Essentially, Twitter would no longer be primarily focused on showcasing highlights but instead on offering complete programs within the app itself.

It’s worth mentioning that Twitter has previously attempted this approach, particularly in the realm of sports content and niche audience programming.

In 2016, Twitter secured exclusive contracts with major sports leagues such as MLB, NFL, and NBA to directly broadcast games within the app.

This was part of a broader initiative to bridge the gap between live TV tweeting and the source material.

Twitter also generated several ideas for a combined viewing and tweeting experience.

However, these initiatives did not gain significant traction, leading Twitter to eventually reduce its efforts in live-streaming and refocus on its core usage.

Nevertheless, that was in the past, and the streaming landscape has undergone substantial changes since then.

Could this be a more opportune moment to make a larger leap into exclusive programming and align user interest in live-tweeting TV shows with the content itself?

It appears that this is the direction Twitter is moving towards.

Moreover, with Musk perceiving Twitter as a rival to television rather than other social apps, it would be a logical extension of that endeavor.

Perhaps, the new Tucker Carlson show is merely the initial step, with Yaccarino assigned the task of enticing more prominent figures to join the app to bolster its content offerings and establish new avenues for monetization.

Will this entice advertisers to return to the platform?

Musk himself recently acknowledged that Twitter’s ad revenue has declined by 50% since he assumed control of the app, citing concerns over the reinstatement of previously banned users and changes in approach as contributing factors.

Elon appeared to have hoped for an increased emphasis on subscriptions in Twitter’s overall revenue structure, aiming to reduce its reliance on advertising income and consequently minimize the need to cater to advertiser demands.

However, the latest data on Twitter Blue subscriptions (currently at 0.3% of Twitter users) indicates that this objective is unlikely to be achieved.

This could be why a new CEO is now required to alter the perception surrounding this aspect.