Twitter boss Elon Musk reveals Twitter ad revenue is now down by 50% as social media competition mounts. Owner Musk said the social media company’s advertising revenue has decreased roughly by 50%, this indicates his struggle to revive the ailing company after buying it for $44 billion. Musk added that the company’s negative cash flow is due to its heavy debt load.
Musk’s decision to temporarily limit the number of tweets users can read in a day added fuel to the fire. As a result, a considerable number of users switched to Meta’s Twitter rival, Threads. This might have also led to a drop in the social media giant’s ad revenue.
It will be interesting to see whether Twitter will manage to come out of this situation. In the meantime, Zuckerberg’s Threads is giving the company a run for its money. It is worth noting that Threads has reached a major milestone even without EU users. In fact, Meta is blocking EU users trying to access threads via VPN.
Nevertheless, Meta says Europe continues to be a very important market and it is gearing up to bring Threads to more countries in the future. Regrettably, it is still unclear why Meta did not launch Threads in Europe. Perhaps, the company is waiting for the upcoming DMA (Digital Markets Act).
To those unaware, DMA alludes to a new European law that restricts big tech companies that connect users to services, goods, and various content from abusing their market power. So, it is safe to assume that Meta is waiting for the EU to fully disclose DMA and adapt Threads to avoid any problem with the law.
Meta’s Threads took the internet by storm when the platform was officially launched earlier this month. It is no secret that the new app is designed to go toe-to-toe with Musk’s Twitter. Its limited availability did not stop Threads from becoming a sensation and making an impressive start.