Twitter Blue, the social media platform’s first foray into the subscription space, is raising its prices for subscribers. Less than a year since Twitter Blue was officially launched in the U.S., the subscription service will jump $2 a month to $4.99 a month, a 67% increase, for U.S. users. Users in Canada, Australia and New Zealand will see similar price hikes. For new subscribers, the price increase will go into effect immediately. Current subscribers won’t see the price increase until October 1, 2022.

Users were notified via email, according to Twitter user Matt Navarra on July 28.

Navarra shared the content of an email on Twitter last week. Here’s an excerpt.

“You’re an important member of the Twitter Blue community, so we wanted you to be among the first to know that the price of Twitter Blue has increased for new subscribers. However, as an early adopter of Twitter Blue, your monthly price will remain the same until October.

You’ll be notified at least 30 days before the new price goes into effect, then your monthly subscription will renew at 4.99 USD/6.49 CAD/6.99 AUD/6.99 NZD, depending on your billing currency.

This change helps us continue to build some of the new features you’ve been asking for, improve upon the current ones you already love and sustain our mission of supporting journalism. We have lots of exciting things coming up, including creating a more frictionless reading experience and launching new features in Twitter Blue Labs. Keep your eyes peeled for more!”

The Twitter Help Center has updated its FAQs to reflect the new cost, indicating that subscriptions are paid on a monthly basis and priced regionally where Twitter Blue is available. Users can find out if Twitter Blue is available in their area and, if so, what the current cost is by navigating to their Profile menu and selecting Twitter Blue. The subscribe button will display the price per month. Subscriptions are non-refundable, even for accounts that have been suspended or to which a user has lost access.

Twitter Blue features

Currently, a Twitter Blue subscription offers the following premium features:

• Ad-free articles
• Bookmark folders
• Custom app icons
• Themes
• Custom navigation
• Top articles
• Reader
• Undo tweet

Twitter Blue Labs

Twitter Blue Labs offers Twitter Blue subscribers early access to features that Twitter is testing before they are made more widely available. These features will change over time with Twitter deciding what to keep, what to remove, and what to offer to all users. Some features will continue to be subscriber-only features. Twitter Blue subscribers can check their settings to find out what the latest features are.

Labs’ current features include:

• Longer video uploads
• 1080p video uploads (not available on mobile Twitter)
• NFT profile pictures (for iOS and Android only)

Twitter financials

Twitter notified Twitter Blue subscribers six days after the release of their second quarter financial results. Like other tech companies, Twitter had a challenging second quarter. The company reported total revenue of $1.18 billion, a 1% decrease year-over-year. Twitter attributes the decrease to the economic downturn and uncertainty surrounding the acquisition of Twitter by billionaire Elon Musk.

Advertising revenue of $1.08 billion represented an increase of 2%, while subscription and other revenue was $101 million, a 27% decrease year-over-year. Meanwhile, the company’s costs and expenses were $1.52 billion, a 31% increase year-over-year. The company attributed $33 million of those costs to the pending acquisition. Severance-related costs accounted for $19 million in the second quarter. Overall, Twitter reported a total operating loss of $344 million, and a net loss of $270 million, or $(0.35) diluted earnings per share.

The company declined to host an earnings call, issue a shareholder letter or provide financial guidance due to the pending acquisition, which is in jeopardy and in litigation. Twitter and Musk go to trial on October 17 in Delaware to decide the fate of the acquisition, reports CNBC. Twitter is hosting a shareholder meeting on September 13 to vote on the acquisition.

Insider Take

A 67% price increase for Twitter seems a bit risky considering the relative newness of the premium offering, especially on the heels of a 27% decline in subscription and other revenue. It might be the easiest place to increase revenue, but Twitter Blue subscribers may abandon ship, further adding to the revenue decline. At $4.99 a month, Twitter Blue is less likely to attract price-sensitive consumers. Except the “undo tweet,” none of the premium features are “must have” features. They are more “nice to haves.”