Elon Musk, owner of Platform One of these involves reducing subscription costs without reducing advertising volume; the second provides for the complete abandonment of advertising, but at a higher price. This initiative is in response to the company’s deteriorating financial situation due to a decline in traffic and advertising revenue.
Two new tiers of X Premium subscriptions are launching soon.
One is cheaper and offers all the features but no reduction in advertising, the other is more expensive but has no advertising.
— Elon Musk (@elonmusk) October 20, 2023
Also this week, X launched an experiment in New Zealand and the Philippines, offering users a paid subscription for $1 per year. This subscription allows posting and commenting and is part of an anti-spam and anti-bot program. It remains unclear whether this annual subscription is one of the two new pricing plans Musk announced.
An $8 per month X-Premium subscription is already available on Musk’s social network. Users who pay for it will receive a blue checkmark for their account confirming passing verification and additional features such as the ability to edit posts. The blue checkmark helps X users identify the authenticity of public figure accounts.
Since the acquisition of Twitter and the subsequent renaming to
These changes have turned off advertisers. As a result, Musk admitted in July this year that Platform X’s financial situation leaves much to be desired. A nearly 50% decline in advertising revenue and debt resulted in negative cash flow.
The introduction of new tariff plans is likely to be an attempt to improve X’s financial condition and create new sources of income for the company. Despite the innovations, the question remains whether X can regain the trust of advertisers and users, especially given the growing competition from less mature players such as Threads and Bluesky.