Twitter (NYSE:TWTR) had a strong trading session Thursday on the heels of its video expansion announcement. The company released details about changes it will make to enhance the use of videos on its network. The question on everyone's mind, though, is whether or not the move will be enough to save the struggling company.
Big Changes
Recently, Twitter announced that it would change the way it handles videos that are shared on the Twitter social network. There are going to be several changes.
- Time Limits – The standard time limit on videos that are uploaded to TWTR is currently 30 seconds. However, Jack Dorsey plans to expand that limit to 140 seconds.
- Interface – TWTR is also planning changes to its video interface. Soon, users will be able to tap on a video to open it in what will be known as 'Watch Mode'. After the video ends, users will be given other video options that are relevant to their interests.
- Vine Videos – Twitter also plans on making changes to its partnership with Vine. The short-form video-sharing service will still require 6-second videos. However, in addition to their Vine video, users will be able to post additional videos in the same post.
- Revenue Share – Finally, for the first time in the company’s history, TWTR plans on sharing revenue. Soon, it will share advertising earnings with Vine content creators.
Ad Dollars Vs. User Experience
That's a huge question. The reality is that Twitter’s biggest problem is user data. For the longest time, the company has focused primarily on advertisers. However, this particular change is designed to improve the user experience. So it’s nice to see that the company is finally actually focusing on the problem at hand.
On the other hand, I don’t think that changes to the way TWTR handles videos will be enough to save the company. While allowing longer videos in a better interface and offering revenue sharing is a good start, the changes actually touch on a bigger issue.
Whenever we hear mention of Twitter, it usually has something to do with word count. I get it, the social network is designed for micro-blogging. It has built its name around small, bite-sized messages. That’s great, but it’s not working. The reality is that consumers don’t like to be limited. In order for the company to offer a compelling user experience, it needs to forget limitations and allow users to do what they will with the network. Unfortunately, I don’t see that happening anytime soon.
What We Can Expect Moving Forward
I have a relatively mixed opinion of what we can expect to see from TWTR. I will say that it's nice to see the company focusing on user experience. In fact, excitement about Twitter's new video focus will likely drive further short-run gains. But in the long run, I don’t see any practical benefits and expect further poor performance from the stock in the long run.
What Do You Think?
Where do you think TWTR is headed?