X Introduces New Subscription Options to Diversify Revenue Model
If the paid service version of X (formerly Twitter) existed prior to its acquisition by Elon Musk and his partners, it now holds a more significant place in the platform’s economic model. X is set to offer users a choice between three different subscription types, expanding its current X Premium subscription. With X Premium, users gain access to additional features, earn a blue certification badge, and experience a 50% reduction in ads. To diversify its offerings, X plans to introduce a cheaper subscription option as well as a more expensive one. The names of these new subscriptions are yet to be disclosed, but they will provide the same features as X Premium.
The difference lies in the advertising experience. The cheaper subscription will not reduce the number of ads seen by users, whereas the more expensive option will eliminate ads entirely. The timing for the release of these new subscriptions is currently unknown, but it is evident that X aims to boost its subscription revenue. The acquisition of X, a platform with 245 million active users, resulted in a decline in advertising revenue. By promoting and diversifying its paid offerings, X hopes to reduce its reliance on advertisers. However, specific pricing details are still unclear.
X Tests $1 Per Year Subscription Model
In addition to the new subscription options, X is also experimenting with a small annual subscription fee of $1. This subscription would grant users access to the core features of the platform. The testing phase for this system is currently underway in New Zealand and the Philippines. Free accounts will be limited to reading content, while paid subscribers will have the ability to post, like, and reply to posts. Although the system is currently limited to new accounts, it has already sparked controversy.
X justifies this new testing by stating that it aims to combat spam and robot activity on the platform. According to X, this test will enhance their existing efforts to reduce spam and manipulation. The company emphasizes that the goal is to strike a balance between platform accessibility and low fees, rather than being driven solely by profit. Elon Musk has already expressed support for this idea, stating that a small commission would discourage bot creators due to the increased costs. X plans to strengthen its paid offerings with the introduction of these new subscriptions, allowing the platform to rely less on advertisers.