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Twitter Considers Subscription Models After Ad Revenue Drops

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  • Twitter CEO Jack Dorsey has announced that the company is considering plans to integrate a subscription model on the platform.
  • Reportedly, that would likely be in the form of an ad-free version of Twitter.
  • The news, which was speculated earlier this month after a job listing from the company appeared, comes amid a 23% decline in the platform’s ad sales compared to this time last year. 
  • It also comes one week after what is now arguably Twitter’s most alarming data breach ever. The company revealed Wednesday that hackers targeted 130 high profile accounts and even accessed the private messages of one elected official in the Netherlands.

Twitter Could Launch a Subscription Model This Year

Amid a sharp decline in advertisement sales, Twitter CEO Jack Dorsey has now said that the company is actively exploring adding a subscription-based model to the platform.

“You will likely see some tests this year” of different models, Dorsey said.

Dorsey revealed the plan on Thursday as Twitter reported its second-quarter earnings report. Notably, ad revenue accounted for $562 million, and while that might sound like jackpot-equivalent figures to the everyday person, it’s actually 23% dip in ad revenue for Twitter compared to the same quarter last year.

That’s also despite attracting a record 20 million daily active users to the platform during the same time period.

Part of the reason why Twitter is seeing slumping ad sales is due to many companies struggling to stay afloat—let alone to maintain ads—in the current COVID-19 pandemic. In fact, Twitter’s drop in ad sales are in line with the U.S. market as a whole, which saw a 25% decline in ad spending for Q2.

Another factor that could play into the drop off involves recent ad boycotts by some companies. Those boycotts have largely been driven by ongoing protests calling for racial justice and criticism that social media platforms are not doing enough to silence hate speech. 

Rumors that Twitter executives might be considering such a move already began to circulate earlier this month after the company posted a job opening seeking a senior software engineer that would join a “new team.”

According to the posting, that team would be focused on “building a subscription platform,” codenamed “Gryphon.” It’s unknown if that name will be used in the future.

Following this news, Twitter stocks surged—particularly because a subscription model would open up new revenue streams and raise the company’s value. After Dorsey’s official announcement, Twitter shares again rose on Thursday.

“First and foremost, we have a really high bar for when we would ask consumers to pay for aspects of Twitter,” Dorsey said in justification of the potential model. “We have focused majority of our attention on increasing revenue durability, meaning that we have multiple lines of revenue to pull from. But most importantly, we want to make sure that any new line of revenue is complementary to our advertising business.”

Essentially, don’t expect to start having to pay to post that tweet that you just know is going to explode with likes; reportedly, Twitter’s subscription model will likely be an ad-free version of the platform. 

“The prospect of a paid version of Twitter—free from trackers, annoying ads and irritating algorithms which meddle with the clean chronology of the timeline—has been a holy grail for certain Twitter addicts since (basically) forever,” Natasha Lomas wrote for Tech Crunch. “So plenty of its most fervent users will be watching keenly to see exactly what Dorsey cooks up.”

Some social media platforms, such as YouTube, have already launched subscription services; however, YouTube’s model is more closely aligned to that of streaming providers. Twitter’s most direct competitors—Facebook and Instagram—are completely free and devoid of subscription models. Like Twitter, both platforms rely on ads. 

The Extent of That Massive Twitter Hack

Twitter’s stunted earnings follow what Dorsey called a “tough week” for the platform. In fact, it was arguably one of Twitter’s worst weeks ever as a massive bitcoin hack compromised dozens of high profile accounts.

The victims of the hack include of a wide scope of public figures, ranging from reality star Kim Kardashian-West to former President Barack Obama and presumptive Democratic presidential nominee Joe Biden.

Twitter revealed the further extent of that hack Wednesday and just how deep its security breach is believed to have stretched. 

“We believe that for up to 36 of the 130 targeted accounts, the attackers accessed the DM inbox, including 1 elected official in the Netherlands,” Twitter said in a tweet. “To date, we have no indication that any other former or current elected official had their DMs accessed.”

“We feel terrible about the security incident,” Dorsey said Thursday. “Security doesn’t have an end point. It’s a constant iteration… We will continue to go above and beyond here as we continue to secure our systems and as we continue to work with external firms and law enforcement.”

See what others are saying: (CNN Business) (Variety) (Tech Crunch)

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Washington State Launches Investigation Into Abuse at Private Special Ed. Schools

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Allegations include staff kicking a fourth-grader and dragging a child with autism around by his leg.


Abuse Allegations

Washington State’s Office of Superintendent of Public Instruction (OSPI) has launched an investigation into a system of private schools for kids with disabilities after ProPublica and the Seattle Times reported on allegations of abuse.

The series of articles focused on Northwest School of Innovative Learning (NWSOIL). NWSOIL is a set of private schools that serve 500 Washington public school students with serious disabilities. ProPublica and the Seattle Times found years of complaints from parents and school districts against NWSOIL alleging abuse, overuse of isolation rooms, and unqualified aides teaching instead of certified professionals.

One district claimed NWSOIL staff kicked a fourth-grader. Another alleged that a child with autism was dragged around by his thigh.

Many former NWSOIL employees also claim that they were pressured by their parent company to to enroll more students and skimp on basic resources, like staffing.

Investigation Launched

In a seven-page letter, OSPI reminded NWSOIL of its authority to revoke or suspend a school’s approval, meaning that it could shut NWSOIL down. 

“Given the serious nature of the allegations made in the articles, OSPI is examining what, if any, actions need to be taken with respect to Northwest SOIL’s approval to contract with Washington school districts,” Tania May, assistant superintendent for special education at OSPI, wrote in the letter.

OSPI has demanded any records of mistreatment, maltreatment, abuse, or neglect as well as documents pertaining to restraint or isolation of students and calls to the police. They are also seeking information about the student-to-teacher ratio and staff qualifications. 

In the letter, OSPI claims that all of this was previously unknown to them as well as to police, Child Protective Services, and local school districts. They are asking NWSOIL for an explanation as to why the allegations were not reported. 

NWSOIL defended itself in a public statement.

“Use of restraints and seclusion are always used as a last response when a student is at imminent risk of hurting themselves or others, it said. “We strongly deny any allegation that we understaff and/or pressure staff to increase admissions in order to maximize profits.” 

Washington state representatives are considering a reform bill that will give them more oversight on the publicly funded system of private special education schools. 

In this legislation, OSPI and at least one district that sends students to this program would be required to visit before approving the contract. It would also standardize district agreements with programs like NWSOIL, including financial safeguards to make sure funds are being used appropriately.

See the full series: (ProPublica) (The Seattle Times)

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31 Children Found Working Graveyard Shift in U.S. Meatpacking Plants

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Evidence suggests the company may have minors employed at 400 other locations.


The Complaint

The Department of Labor (DOL) recently found that a leading contractor for sanitation allegedly employed 31 minors from ages 13 to 17 for overnight cleaning of slaughterhouses and meatpacking facilities. 

Packers Sanitation Services, Inc. is under investigation for employing over 30 minors in three locations in the Midwest. The DOL claims the children were cleaning dangerous equipment with hazardous chemicals up to 6 or 7 days a week. Several of these children reported injuries, including chemical burns. 

The DOL filed a complaint with the Federal District Court of Nebraska for a nationwide injunction on Packers. According to their complaint, evidence suggests that Packers may have kids working at 400 other locations across the country. 

The court partially fulfilled the DOL’s request and ordered Packers to “immediately cease and refrain from employing oppressive child labor.”

The order also demanded Packers comply with the DOL’s investigation because the complaint included claims that Packers’ managers had been tampering with evidence – including obstructing interviews and attempting to hide or delete important documents, text messages, and incident reports. 

The Response

According to the complaint, the purpose for the nationwide injunction request is the safety of the kids while the DOL investigates.

While Wage and Hour is continuing to pour over records to identify such children, it is slow, painstaking work. Yet, the children working overnight on the kill floor of these slaughterhouses cannot wait,” it reads.

Packers denied the accusations. In a statement to NBC News, it said that it has “an absolute company-wide prohibition against the employment of anyone under the age of 18 and zero tolerance for any violation of that policy — period.”

Packers also said it was surprised by the complaint because it claims to be cooperating with the investigation by providing important documents and responses. 

A hearing has been set for Nov. 26 to decide whether the order will be dissolved, extended, or modified. 

See what others are saying: (New York Times) (NBC News) (CBS News)

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Officers Charged After Detaining Woman in Car Hit by Train, Woman Faces Charges Too

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The woman suffered nine broken ribs, a broken arm, a broken leg, a broken sternum, broken teeth, and several other injuries, her lawyer said.


Prosecutors Bring Charges

Less than two months after police in Colorado left a woman handcuffed in a patrol car parked on a railroad crossing as a freight train plowed through it, the severely injured woman has still been charged, according to a statement Monday.

In September, multiple law enforcement agencies responded to a road rage incident in Fort Lupton, where they arrested 20-year-old Yareni Rios-Gonzalez for allegedly brandishing a firearm at another driver. While they searched her vehicle, they placed her in a squad car that was parked on train tracks.

Despite being hospitalized for nearly two weeks after the incident, Rios-Gonzalez has been charged with felony menacing, the Weld County District Attorney’s Office said in a statement.

Her lawyer, Paul Wilkinson, told Reuters the news that she was being charged was disappointing and added that he will file a lawsuit against police for his client’s injuries and for violating her civil rights.

Two officers were also charged for their involvement in the incident. Officer Jordan Steinke, from the Fort Lupton Police Department, faces one count each of attempted manslaughter and second-degree assault, both felonies, as well as reckless endangerment, a misdemeanor. Sgt. Pablo Vazquez, from the Platteville Police Department, faces five counts of reckless endangerment, one count of obstructing a highway or other passageway, one count of careless driving, and one count of parking where prohibited, all misdemeanors.

Abandoned on the Tracks

A Platteville police officer reportedly stopped Rios-Gonzalez just past the railroad tracks and parked the patrol car on the crossing.

In body camera footage obtained by 9News, she can be heard screaming from inside the vehicle, trying to get their attention as the freight train barreled toward them.

At one point, the locomotive’s horn blares audibly in the distance, but the officers either fail to hear it or ignore it.

By the time the cops notice the incoming train, there are mere seconds until impact, and they scramble away leaving the woman trapped inside.

Vazquez can be heard saying he did not know he parked on the tracks and that he was unaware another officer had placed Rios-Gonzalez in his patrol car.

Rios-Gonzalez suffered nine broken ribs, a broken arm, a broken leg, a broken sternum, broken teeth, and several other injuries, according to Wilkinson.

See what others are saying: (Reuters) (CBS News) (The Colorado Sun)

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