Technology
Friday, October 20th, 2023 1:58 pm EDT
Key Points
- Subscription Tiers: X, the social media platform formerly known as Twitter, will introduce two new subscription tiers for its users, as announced by owner Elon Musk. One tier will offer a lower cost with all features, but it will not reduce ads, while the other, more expensive tier, will be ad-free.
- $1 Annual Subscription Test: X recently initiated a test in New Zealand and the Philippines, charging users $1 per year to enable them to “post & interact with other posts.” This is part of an anti-spam and anti-bot program. Users who opt out of this subscription will only be able to read posts.
- Platform Evolution and Financial Challenges: Since Elon Musk’s takeover of Twitter and its rebranding as X in October 2022, the platform has undergone significant changes, including cuts to trust and safety teams and the removal of blue checkmarks from nonpaying accounts. These changes have deterred advertisers, leading to a substantial drop in advertising revenue. The introduction of new subscription tiers appears to be an effort to address financial challenges and generate additional revenue streams. X is also facing competition from emerging social media platforms like Meta’s Threads and Bluesky.
Elon Musk, the owner of X (formerly known as Twitter), has announced the introduction of two new subscription tiers for users of the social media platform. One of these tiers will offer “lower cost with all features, but no reduction in ads,” while the other will be “more expensive, but has no ads.” This move comes after X recently unveiled a test in which users in New Zealand and the Philippines are charged $1 per year to “post & interact with other posts” as part of a program aimed at combating spam and bot activity. However, it remains uncertain whether the $1 annual subscription is one of the two mentioned by Musk.
Previously, X had launched a $8 per month subscription service called X Premium, which granted users a blue checkmark on their accounts, indicating verification, along with other features like post editing.
Elon Musk has instigated substantial changes to X since taking over in October 2022, including reducing trust and safety teams and removing blue checkmarks from nonpaying accounts. These moves have led to concerns among advertisers, as X reported a significant drop in advertising revenue and ongoing financial challenges. The introduction of new subscriptions is seen as a potential effort to bolster the company’s finances and create additional revenue streams.
X faces competition from emerging players like Meta’s Threads and Bluesky, making it crucial for the platform to adapt and innovate in response to evolving social media dynamics.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/20/elon-musk-x-formerly-twitter-to-launch-two-new-subscription-tiers.html
