‘Twitter made it mathematically inconceivable to show a revenue’
On August 12, Twitter launched an entire rebuild of its 2012 API, with new endpoints for knowledge assortment, new entry ranges and a brand new developer portal. Notably, the version 2 API was offered as a step in mending the notoriously fractious relationship between Twitter and its third-party developer group.
Enhancements for third-party builders, nonetheless, arrived with hints of irony leaving many startup CEOs within the ecosystem unconvinced. Inside 35 days of the v2 launch, Twint, a preferred knowledge scraping device for researchers and journalists, stopped working. Twint is the most recent casualty in an extended string of third-party purposes, together with Tweetbot, Twitpic and quite a few others which have shut down because of Twitter’s API restrictions.
“It may be time to get into another game,” says Ben Strick, a BBC investigator specializing in Twitter analytics.
“The game has already changed,” provides Tim Barker, the previous CEO of DataSift, who defined that there’s rightful skepticism over enhancements in Twitter’s remedy of third-party purposes. From a purely enterprise standpoint, as soon as Twitter instantly entered the info analytics market after its 2014 acquisition of Gnip, it needed restricted gamers and not a competing ecosystem. Below elevated public scrutiny of social media platforms post-Cambridge Analytica, Twitter additionally prioritized guarding its platform’s picture, hoping to keep at bay elevated regulation of its knowledge.
“You can look on Crunchbase, but I can guarantee no one is in their bedroom starting a Twitter-centric startup anymore,” says Barker.
Essentially the most evident proof of Twitter tightening entry to its knowledge are large hikes in pricing, which have pushed a number of startups out of the market. “In the early days,” Barker explains, “the pricing of Twitter data was volume based, as they were building an economy and an ecosystem.” However as soon as that market matured and was funded by enterprise capitalists, Twitter was a post-IPO firm that noticed a chance to churn earnings.
In accordance with Stuart Shulman, CEO of Texifter, the market worth of high-quality metadata for 100,000 tweets in 2011 was round $25-$50 USD. At present, Twitter estimates for the same amount of information might probably value tens of 1000’s of .
In 2018, Texifter (buyer #9 of Gnip) did not renew its eighth annual settlement for premium Twitter knowledge. Throughout annual contract renegotiations, Twitter sharply elevated costs and imposed more and more stringent laws, together with a quota on the quantity of information Texifter might license entry to. In Shulman’s phrases, “Twitter made it mathematically impossible to turn a profit.”