Trump Media Announces Rollout of Truth+ Streaming Platform

This illustration photo shows a person checking the app store on a smartphone for Truth Social with a photo of former President Donald Trump on a computer screen in the background, in Los Angeles, Oct. 20, 2021. (Chris Delmas/AFP via Getty Images)

Truth Social has begun a phased rollout of its Truth+ streaming platform, aiming to establish a home for content that was “neglected by the big corporations or is at risk of cancellation.”

Trump Media & Technology Group (TMTG), which operates Truth Social, started beta testing of streaming services on Friday, the Florida-based company said in an Aug. 2 press release. “After rigorous stress testing, the initial streaming service is expected to become available to all Truth Social users on the Web, followed shortly by its rollout on Android and iOS.”

Once tested and deployed, a Truth+ streaming icon will appear on the platform, the firm stated. iOS users will have to update their Truth Social app to access the streaming service, while no updates are required for Android or Web users.

The company’s streaming technology is touted to be backed by specially designed infrastructure that comes with its own proprietary software stack, servers, and routers. As such, TMTG will reportedly have control over the technology, ensuring the firm is not too dependent on established Big Tech players like Amazon or Microsoft.

“First, we created Truth Social to provide a safe harbor for free speech on the Internet … Now, we’re establishing a reliable home for great TV content that is neglected by the big corporations or is at risk of cancellation,” said TMTG CEO Devin Nunes.

“We are securing our own tech stack and hardware infrastructure to make our new CDN (content delivery network) uncancellable. I look forward, in the near future, to launching many enhancements and adding great, new content to the platform.”

Following the announcement, shares of TMTG jumped. The stock had ended Thursday at $27.20. By the end of Friday, it was at $29.21, an increase of 7.38 percent. Year-to-date, TMTG shares have increased by more than 67 percent.

It is unclear when the streaming service is set to go live. Truth+ is positioned to compete against other conservative streaming services such as Tucker Carlson Network (TCN) which costs $9 per month.

Streaming Plan, TMTG Profitability

Streaming is a key service for TMTG as it attempts to become profitable. In 2023, the company made around $4.1 million in revenue while suffering a net loss of $58.2 million. A big part of the loss came from interest payments on outstanding debt.

In a regulatory filing in April, TMTG had said that it “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.”

Nunes said in early July that TMTG had $350 million in the bank and that the company had “secured a great deal to guarantee access to additional capital, if necessary, to pursue big strategic opportunities.”

In another filing, TMTG said that the company’s success “depends in part on the popularity of its brand and the reputation and popularity” of the 45th president.

“Adverse reactions to publicity relating to President Donald J. Trump, or the loss of his services, could adversely affect TMTG’s revenues and results of operations,” it said.

Trump’s effect on TMTG’s valuation was evident after the assassination attempt against him on July 13, when TMTG stock shot up more than 31 percent on July 15 before settling down.

TMTG had a market valuation of $5.86 billion as of Friday. Trump owned 58.7 percent of the company as of June 25, making his stake in the firm roughly $3.4 billion.

The next two biggest shareholders in the TMTG own less than 13 percent combined. The company began trading in the Russell 1000 and Russell 3000 Indexes from late June.