Product

I haven't had a "blindingly obvious" cite for a while, so here's Jon Schwarz:

Twitter currently makes 90 percent of its revenue from advertising... This means that you, the Twitter user, are not Twitter’s customers. You are its product. Its customers are corporate advertisers and, as every businessperson knows, the customer is always right. Grocery stores care about the people shopping for Cheetos, not about the feelings of the Cheetos themselves.

Twitter’s content moderation has sometimes been heavy-handed... But this is not because Twitter is run by a woke mob. It’s because Twitter needs to keep advertisers happy — and their top priority is a certain kind of environment for their ads.

...

Twitter is also, speaking just in financial terms, a crummy business. It’s only been profitable for two years of its existence, 2018 and 2019. In 2020 it lost over $1 billion, rebounding to lose a mere $222 million in 2021.

To make matters worse, Musk’s deal to buy Twitter involved taking out $12.5 billion in loans. This means that Twitter will have to come up with an additional $1 billion a year to service this debt.

Thus if Twitter simply continues on its current path, it will lose huge amounts of money indefinitely. But if advertisers get nervous about Musk’s management and flee the platform, it could see losses every year in the multiple billions of dollars.

...

This is why Musk hit the ground running with a groveling attempt to propitiate advertisers. He absolutely must keep them happy. As he put it, “Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise.”

And that’s where the hilarity begins. Musk has engaged in endless paeans to the glory of free speech and the need to end Twitter’s invidious censorship... [This has] given him a legion of right-wing acolytes who feel they’ve been ill-treated by Twitter.

But they are not Musk’s constituency now. Advertisers are.