Industry professionals speculate about Twitter's profitability

Posted by Emily Dilling on July 13, 2009 at 8:48 AM

Much buzz has been made regarding the possibility of microblogging site Twitter eventually making a profit, but several industry professionals seem to think the outlook is bleak for the popular site.

"The microblogging site may never be able to turn a profit," Brennon Slattery wrote on his PC World blog, where he reported that at a Sun Valley, Idaho media conference hosted by Allen & Co., the hot topic was whether Twitter could generate earnings from its content. Participants in the conference seemed to believe a subscription model was the only viable source of revenue for the site.

The Associated Press, also reporting on the conference, described a panel discussion addressing the issues that could affect Twitter's profitability in which participants seemed wary of the site developing a successful business model.

"I think it's a great service. I just don't think it's a natural advertising medium," commented media executive Barry Diller.

The creators of Twitter, Evan Williams and Biz Stone, are reportedly working on a business model they have yet to unveil. The AP reported on what the model might entail, saying Williams and Stone "have suggested they might impose fees on companies interested in mining the data about consumer preferences and peeves that pour into Twitter."