Subscription services have been a mixed bag for social media giants,including Elon Musk’s X,but that hasn’t deterred the rapidly growing social app Bluesky from exploring the model. the platform, which has seen a meteoric rise in popularity, particularly in the United States, is currently experimenting with paid add-on features for its users.
Bluesky, which started as a research project at Twitter (now X) in 2019 and became an self-reliant company in 2021, is working on a range of premium features that could be available to users through a monthly subscription. The company’s CEO,Jay Graber,recently revealed that subscriptions are the first step in Bluesky’s monetization strategy.
On the developer platform GitHub, Bluesky’s team is testing various add-ons that users would pay for, including a profile badge, analytics tools, extended video upload capabilities, and profile customization options. These features are currently priced at $8 (€7.50) per month or $72 (€68) per year for Bluesky+, even though the company has noted that these prices are subject to change before the official launch.
Bluesky’s approach to monetization is unique in that it aims to avoid the traditional advertising model and the selling of user data. the platform has experienced a meaningful surge in users, with over 20 million global users as of late, a ample increase from the 9 million it had in September. The company’s focus on subscriptions and potential choice revenue streams is a direct response to this growth.
However,the success of subscription-based models in social media is not guaranteed. Elon Musk’s X, for instance, has struggled to increase paid subscriptions with its X Premium service, which was designed to reduce the platform’s reliance on advertising revenue. According to a report by app intelligence firm Appfigures, X has generated approximately $200 million (€190 million) in in-app purchase revenue as the 2021 launch of its subscription service, then known as Twitter Blue.
despite the challenges,Bluesky’s CEO has hinted at other potential revenue streams,such as selling domain names,creating a marketplace for algorithms,and even considering advertising. The company’s innovative approach to monetization and its rapid user growth make it a platform to watch in the evolving social media landscape.
An intriguing case study in the evolving landscape of social media platforms. Unlike traditional advertising models, Bluesky is seeking to foster a more lasting business model that prioritizes user experience and privacy over ad revenue and data selling.
As the platform continues to roll out its premium features, the success of this subscription model will be closely watched. If successful, it could pave the way for othre social media companies to consider similar approaches in diversifying their revenue streams. Wiht its burgeoning user base, which has escalated from 9 million to over 20 million in a relatively short time, Bluesky is in a strong position to capitalize on this trend.
Nonetheless, the mixed results of subscription models on platforms like X highlight the uncertainty inherent in this strategy. Bluesky’s emphasis on user-centric features and alternative revenue options, such as the proposed marketplace for algorithms and domain name sales, may provide it with a competitive edge as it navigates the challenges of monetization in the social media space. The outcome of Bluesky’s initiatives will not only influence its future but also possibly reshape how other platforms think about monetization and user engagement.
