Here’s Why Twitter Is Partnering With Pay-TV Broadcasters

While Pay-TV broadcasters are losing subscribers due to cord-cutting and competition from streaming players, social media companies are looking at ways to improve the live video content on their platforms. Twitter (NYSE:TWTR) has come up with an innovative way to create a win-win situation for both sectors, partnering with Pay-TV subscribers to broadcast live channels on its platform. This will allow Pay-TV subscribers to link their Twitter accounts with their cable subscriptions and watch TV on Twitter. While this does not reduce costs for subscribers, it does give viewers the option to watch the content from any device and enjoy the social experience of viewing on Twitter. Twitter can increase engagement among users as they watch these live sporting events on its platform and tweet simultaneously. The company has been focusing on live sports and other live events to differentiate itself from other social media players. However, the broadcasting rights for many key sporting events are held by Pay-TV companies, and it is tough for Twitter to compete with them to gain these rights. A partnership which allows the company to show these events on its platform could allow Twitter to increase engagement on its platform without incurring substantial costs.

We expect a steady increase in Twitter’s U.S.  and international monthly average users over our forecast period

However, with significant competition from players such as Snap and Facebook, it will be challenging for Twitter to grow users at a rapid pace, as evidenced by the recent slowdown in user growth. Twitter is focusing on consolidating its products and making its platform the go-to place for news and live events. Video consumption among users is increasing at an exponential pace, and advertisers are allocating an increasing proportion of marketing budgets to videos on social media platforms. A partnership with Pay-TV broadcasters can increase Twitter’s user engagement can help the company drive advertising revenues in the long term.

See our complete analysis for Twitter

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap

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