Trump Media and Technology Group Corporation (TMTG), the operator of Truth Social, said on Tuesday, April 16, it is venturing into the streaming industry. However, the move was met with skepticism among investors. TMTG shares dropped 11% following the announcement. Shares were already down 70% from their peak in late March 2024.
This tumble on Tuesday followed an 18% drop on Monday, reflecting ongoing concerns about the company’s future. TMTG reported losses of $58 million in 2023, with revenue totaling just $4.1 million.
The shift to streaming raised additional concerns as streaming is a notoriously costly undertaking. Media giants like Disney struggle to turn a profit in the space.
However, Truth Social claimed it will provide unique content not found on traditional streaming platforms. It also said it would offer a space for information and entertainment that may be restricted elsewhere. The live streaming platform plans to scale up its content delivery network in three phases.
Phase one involves a content delivery network for streaming live TV to the app for Android, iOS and web. Phase two consists of over-the-top or OTT streaming apps for phones, tablets and other devices. The third phase will see the release of Truth Social apps to live TV.
TMTG stated that its new initiative represents its commitment to free speech by providing an option for creators struggling to find an audience. The company also said it would provide a space for creators it believed are being suppressed on other platforms.
