Elon Musk, the billionaire entrepreneur, today unveiled plans for his social media platform, X (formerly known as Twitter), to introduce two new premium subscription tiers. One of these options will be more affordable, offering all the platform’s features but without eliminating ads. The second, pricier tier will be ad-free.
This announcement comes as X initiated a $1 charge for new users in New Zealand and the Philippines for platform access. While Mr. Musk didn’t delve into specifics about these new premium tiers, it’s expected that they will provide enhanced features and options for users willing to pay for them.
For those who choose not to subscribe, they’ll have limited functionality, restricted to “read-only” actions, such as reading posts, watching videos, and following accounts.
Related / Twitter/X tests three paid subscription levels
It remains uncertain if there will be any free usage options on the platform. Elon Musk’s long-standing belief is that charging for the service can help combat issues like bots and fake accounts on social media.
Since taking over the company in October of the previous year, Musk has been working to incentivize users to opt for enhanced paid services, now referred to as X Premium (formerly Twitter Blue). Some users are already paying $8 per month for the “blue check” subscription service.
The “Not A Bot” subscription method is aimed at reducing spam, manipulation, and bot activity on the platform. Additionally, Musk has been trying to entice advertisers back to X by offering discounts.
However, his rapid changes, including massive layoffs and disbanding content moderation teams, have caused advertisers to pause their ad campaigns on the platform. Revenue has taken a hit, and Musk has attributed this to activists pressuring advertisers.
This shift towards a mix of ad-supported and subscription plans is not unique to X. Other major tech companies, such as Alphabet‘s YouTube and Netflix, have experimented with similar models. YouTube shares a portion of its subscription revenue with content creators, while X also shares some of its ad revenue with creators. It’s not yet clear if content creators will receive payment in ad-free subscription models.
Despite Musk’s efforts to generate revenue and improve content moderation on X, advertisers have been cautious about returning, concerned that their ads might appear alongside inappropriate content. Notably, the European Commission has recently launched an investigation into X to assess its compliance with new tech regulations regarding illegal and harmful content, especially following concerns related to disinformation on the platform in the wake of events like Hamas’s attack on Israel.
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