Go or no-go, target users and price for an ad-free Twitter subscription tier

Quick Overview

A product strategy and pricing case about a proposed Twitter subscription that removes ads and lets users undo tweets. It tests deciding whether the tier is worth launching, choosing which users to charge, setting a price and planning how to validate demand before a broad rollout.

Go or no-go, target users and price for an ad-free Twitter subscription tier

Company: X (Twitter)

Role: Product Manager

Category: Product / Decision Making

Difficulty: medium

Interview Round: Other

Twitter is considering a paid subscription tier. Subscribers would get three things: no ads, the ability to undo a tweet, and a handful of smaller features. How would you decide whether launching this tier is a good idea, which users it should be sold to and what it should cost? Cover any other decisions you think the launch depends on. ```hint What a free user is worth today Before choosing a price, think about what Twitter earns from a user who sees ads, and about which users would be the first to sign up. ``` ### Clarifying Questions - What is the main goal: revenue that does not depend on advertisers, more value for the most active users, or both? Is the tier expected to be profitable on its own? - What does "undo" mean here: a short window to cancel a tweet before others see it, or something beyond deleting a tweet, which anyone can already do? - Does "no ads" remove every promoted tweet, account and trend across the product, or only ads in the home timeline? - Which markets would launch first, and would the subscription be sold through the mobile app stores, the website or both? ### What a Strong Answer Covers - A go or no-go framework that weighs the strategic goal, the value of each feature to users and the economics, including the ad revenue Twitter gives up on each subscriber. - Target segments ranked by willingness to pay and by the ad revenue they generate today, with a justified first segment. - A price grounded in both a floor (forgone ads, store fees, costs) and the value users see, plus packaging and regional pricing choices. - Effects on free users and advertisers, and the metrics and guardrails that would show the tier is working. - A plan to validate demand and price before a broad launch, with clear criteria for stopping or changing course. ### Follow-up Questions - Advertisers complain that the most engaged users are vanishing from their audience. How do you respond? - Would you charge the same price in every country? How would you set prices by region? - If research shows few people would pay for undo, what would you do with the tier?

Overview: A product strategy and pricing case about a proposed Twitter subscription that removes ads and lets users undo tweets. It tests deciding whether the tier is worth launching, choosing which users to charge, setting a price and planning how to validate demand before a broad rollout.

X (Twitter) logo
X (Twitter)
Sep 9, 2024
mediumProduct ManagerOtherProduct / Decision Making
0
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Twitter is considering a paid subscription tier. Subscribers would get three things: no ads, the ability to undo a tweet, and a handful of smaller features.

How would you decide whether launching this tier is a good idea, which users it should be sold to and what it should cost? Cover any other decisions you think the launch depends on.

Clarifying Questions Guidance

  • What is the main goal: revenue that does not depend on advertisers, more value for the most active users, or both? Is the tier expected to be profitable on its own?
  • What does "undo" mean here: a short window to cancel a tweet before others see it, or something beyond deleting a tweet, which anyone can already do?
  • Does "no ads" remove every promoted tweet, account and trend across the product, or only ads in the home timeline?
  • Which markets would launch first, and would the subscription be sold through the mobile app stores, the website or both?

What a Strong Answer Covers Guidance

  • A go or no-go framework that weighs the strategic goal, the value of each feature to users and the economics, including the ad revenue Twitter gives up on each subscriber.
  • Target segments ranked by willingness to pay and by the ad revenue they generate today, with a justified first segment.
  • A price grounded in both a floor (forgone ads, store fees, costs) and the value users see, plus packaging and regional pricing choices.
  • Effects on free users and advertisers, and the metrics and guardrails that would show the tier is working.
  • A plan to validate demand and price before a broad launch, with clear criteria for stopping or changing course.

Follow-up Questions Guidance

  • Advertisers complain that the most engaged users are vanishing from their audience. How do you respond?
  • Would you charge the same price in every country? How would you set prices by region?
  • If research shows few people would pay for undo, what would you do with the tier?