Will Twitter's (TWTR) New Video Plans Save the Company?

Twitter Inc (NYSE: TWTR)

Twitter is having an incredibly strong trading session today, and for good reason. The company released information with regard to changes it will be making to videos on the network. However, will these changes be enough to save the struggling company? Today, we’ll talk about the changes Dorsey plans to make, whether or not this will be enough to save the company, and what we can expect to see from TWTR moving forward.

TWTR Is Planning Big Changes

Recently, Twitter announced that it would be making big changes to the way it handles videos that are shared through the social network. There are going o be several changes. Here they are…

  • Time Limits – The standard time limit on videos that are uploaded to TWTR is currently 30 seconds. However, Jack Dorsey plans to change that limit. In fact, he announced that he plans on increasing the limit to 140 seconds.
  • Interface – TWTR is also planning changes to its video interface. Soon, users will be able to tap on a video to open it up in what will be known as Watch Mode. After the video, users will be given multiple other video options that are relevant to their interests.
  • Vine Videos – Twitter also plans on making changes to what is known as the Vine. The short-form video-sharing service will still require 6 second videos. However, in addition to their Vine video, users will be able to post additional videos in the same post.
  • Revenue Share – Finally, for the first time in the company’s history, TWTR plans on sharing revenue. Soon, the company will share advertising earnings with Vine content creators.

Will This Be Enough To Save TWTR?

This is a huge question. The reality is that Twitter’s biggest problem is user data. For the longest time now, the company has focused primarily on advertisers. However, this particular change is a change designed to improve the user experience. So, it’s nice to see that the company is finally actually focusing on the problem at hand.

On the other hand, I don’t think that changes to the way TWTR handles videos will be enough to save the company. While allowing longer videos in a better interface and offering revenue sharing is a great thing, the changes actually touch on the big issue at hand.

You see, anytime we hear something about TWTR, the word limit seems to be somewhere. I get it, the social network is designed for micro-blogging. It has built its name around small, bite sized messages. That’s great, but it’s not working! The reality is that consumers don’t like to be limited. In order for the company to start offering a compelling user experience, it needs to forget limitations and allow users to do what they will with the network. Unfortunately, I don’t see that happening anytime soon.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from TWTR. I will say that I’m glad the company is finally focusing on user experience, and investors are too. In fact, excitement about this focus will likely drive further short run gains. However, in the long run, I don’t see the problem changing any time soon. So, I’m expecting poor performance out of the stock in the long term.

What Do You Think?

Where do you think TWTR is headed moving forward? Let us know your opinion in the comments below!