Bluesky struggles to make money and eyes subscription model

In the United States, the social media platform Bluesky has experienced remarkable growth, recently surpassing 25 million users. However, similar to its predecessor Twitter, Bluesky is grappling with the challenge of generating a sustainable revenue stream. To counter this, the company is contemplating the introduction of a subscription-based model. Planned features for the subscription service, dubbed 'Bluesky+', include a profile badge, custom app options, enhanced profile customization, higher-quality video uploads, post translations, and access to analytics and bookmarks. Early mockups, shared on Bluesky's GitHub, suggest a pricing structure of $8 per month or $72 annually for the subscription, which aims to retain the usefulness of the free version without detracting from the user experience. Despite the potential benefits of a subscription model, experts caution that Bluesky may face significant risks if implemented prematurely. Angeli Gianchandani, a marketing practitioner at New York University, highlights that a well-articulated value proposition is essential for attracting users to the premium offerings. Moreover, if the service is not seen as beneficial, it could deter users seeking a free alternative to Twitter. The subscription model also poses the challenge of balancing with ad revenue. Critics suggest that although a subscription could provide additional income, eventually, Bluesky may need to incorporate advertisements to ensure robust financial health. The company has previously noted that it will avoid offering paid verifications, in contrast to X and Meta’s approaches, which raises questions about the overall market competitiveness and user retention strategy. Sterling, another industry commentator, has pointed out that the platform likely needs to employ both subscriptions and ads to secure sustainable revenue. Therefore, the current moment is critical for Bluesky as it attempts to carve out a unique space in a crowded social media landscape, learning from the experiences of its predecessors. With challenges such as avoiding intrusive advertising while simultaneously attempting to nurture user trust and growth, the success of Bluesky in the coming months largely hinges on its strategic decisions regarding monetization and user engagement.