Social media and internet companies have long searched for stable revenue and earnings beyond the hype of connecting people for free. Twitter may be on to something big, big enough to bring an initial public offering. They are investigating the latter, not because it is just fashionable, but because it may be able to convince millions of people, including sports fans, to buy stock. Why? Because there may just now be enough tangible evidence of a profitability model destined to work.
It’s called Twitter Amplify. At bottom it is a way to generate advertising revenue through an economic interconnectedness between itself, companies that provide sports content, and their sponsors. Twitter has already done the test market. Twitter first connected with content providers, ESPN and Turner Sports. Twitter provides a robust platform for those content providers to place short video-clips of sporting events in near-contemporaneous fashion. Revenue is shared between Twitter, the content provider and the distributor.
Continue reading the rest of the story on Forbes