Elon Musk to charge ‘small’ monthly payment from X users
Elon Musk indicated that he might transition X (formerly Twitter) into a fully subscription-based social network during a conversation focused on artificial intelligence with Israeli Prime Minister Benjamin Netanyahu on September 18.
Musk suggested implementing a small monthly fee for X/Twitter users as the only effective way to combat the problem of bots. While Musk didn’t specify the timing or the exact cost of this subscription, he mentioned that X currently boasts 550 million monthly active users who generate between 100 million and 200 million daily posts.
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According to industry news site Platformer, Musk previously mulled the idea of putting Twitter entirely behind a paywall in internal conversations. The billionaire, who also runs Tesla and SpaceX, pointed out that X’s ad sales have declined by approximately 50% since he acquired the company, leading to negative cash flow due to the drop in advertising revenue and a heavy debt load.
“We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load,” Musk posted on July 15.
Currently, X offers a subscription program known as X Blue (formerly Twitter Blue) starting at $8 per month. This subscription provides users with various benefits, including verified check-mark status, post-editing within a one-hour window, a 50% reduction in ads, prioritised post rankings in conversations and search, increased character limits for posts (up to 25,000 characters), and the ability to upload longer videos (up to 3 hours or 8 gigabytes in size).
Subscribers also have the opportunity to earn a share of advertising revenue, primarily from ads displayed in responses to their posts, reported Variety.
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After Elon Musk closed the $44 billion deal to acquire Twitter in October 2022, he took control of the company and carried out significant layoffs, reducing the workforce by approximately 80%. Musk subsequently appointed himself as CEO.
Musk appointed former NBCUniversal sales executive Linda Yaccarino as CEO of X earlier this year. Since her arrival in June, Yaccarino recruited a team of new sales executives. However, Musk has remained actively involved in the company’s product and technology teams.
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Updated: 19 Sep 2023, 09:21 AM IST