The article focuses on the fact that Twitter, the social media giant has reported an approximate $460 million loss in 2016. The Chief Executive and Co-founder has also reported that this huge loss has been due to the fact that the social media website has suffered a huge decrease from advertising income despite having previously stated that the "impact and influence" of Twitter is huge due to Donald Trump boosting its power. The article also talks about the fact that investors are uncertain as the company is experiencing considerable losses despite cutting almost 10% or 350 workers out of its staff.
- Twitter reveals $457m loss for 2016
- The tech company suffered a decline in advertising income
- Jack Dorsey, chief executive and co-founder, hailed the growing “impact and influence” of Twitter, saying the US president had “boosted the power” of the service.
- The tech company is still making sizeable losses, falling $457m into the red during 2016 despite cutting 9% of its workforce, or about 350 people.
Personally, I think this is an interesting case. I definitely agree with Dorsey's statements that social media website has huge amounts of impact and influence. However, it cannot have this influence if there are no users actually partaking in the website's activity which would therefore result in greater decreases in advertising contracts and incomes and therefore result in huge losses for the company. In the case of print media, it was the huge lack of advertising income that genuinely led to it's rapid decline. I personally think that the same reason why Dorsey is happy with Donald Trump "boosting" the services is also the reason for his demise, as many people are probably leaving the service as a protest to Donald Trump or to put it simply, they just don't want to listen to him anymore.
No comments:
Post a Comment