Elon Musk made an announcement today regarding the plans of X, formerly known as Twitter. Musk confirmed the impending launch of two distinct premium tiers, affirming prior reports and code discoveries.
The proprietor of the platform divulged that one of these tiers will be priced lower than the current $8 per month subscription but will not eliminate ads. On the other hand, the second tier will be more costly and will offer an ad-free experience. The existing premium subscription guarantees to display “half ads” to its subscribers, with no mention of the pricing for these new tiers by Musk.
Elon Musk’s revelation comes following recent discoveries within X’s code by @aaronp613, which alluded to the existence of three separate premium tiers. In addition, Bloomberg also reported the platform’s experiments with various paid plans aimed at augmenting their revenue streams.
In a bid to boost X’s revenue, Musk and his team have been exploring innovative strategies. Just this week, the company initiated trials of a plan costing just $1 per year for new users in New Zealand and the Philippines. This basic plan covers essential functions like posting, liking, and reposting. The social network clarified that this initiative was primarily intended to curtail the prevalence of bots on the platform and not as a substantial profit generator.
It is worth noting that Reuters reported earlier this month that ad revenue has been consistently dwindling since Musk’s takeover of the platform. Consequently, Musk’s moves to fortify subscription revenue do not come as a surprise.
As the company strives to attract advertisers under the leadership of former NBCU executive Linda Yaccarino as CEO, they are keen on presenting impressive metrics. Yaccarino recently shared that X boasts approximately 245 million daily active users and witnesses an impressive 500 million daily posts.
Elon Musk’s revelation of X’s new premium tiers underscores the platform’s determination to diversify revenue sources and adapt to changing market dynamics. While the shift towards premium offerings may concern some users who value a free experience, it’s evident that X is navigating a complex landscape where advertising revenue alone may not suffice. As X continues to evolve, it remains to be seen how these changes will impact its user base and whether they can strike the right balance between monetisation and user satisfaction. The future of X, with its premium tiers, is undoubtedly a topic to watch in the ever-changing realm of social media.