Musk certifies that X will soon feature two premium tiers
One tier, according to the platform’s proprietor, will be priced below the current $8 per month plan without a reduction in advertisements. The alternative tier will be more expensive and will be ad-free. Subscribers are promised “half ads” under the current premium plan. Musk made no reference to the cost of these new tiers.
Two new tiers of X Premium subscriptions launching soon.
One is lower cost with all features, but no reduction in ads, and the other is more expensive, but has no ads.
— Elon Musk (@elonmusk) October 20, 2023
At the beginning of this month, @aaronp613 discovered in X’s code allusions to three distinct premium tiers. Additionally, Bloomberg reported that the organization is conducting trials of various paid plans in an effort to increase revenue.
Meta is reportedly considering the implementation of an ad-free tier in response to a ruling by an EU court that states users should be provided with the option to select for an ad-free tier in the event that they decline the company’s request to process their data. Recent reports also indicate that TikTok is piloting an ad-free tier. It is uncertain whether X’s action is a reaction to the EU Court’s decision.
Musk & co. are trying new ways to increase X’s revenue. Earlier this week, the company started testing a $1 per year plan for new users in New Zealand and the Philippines for basic functionality like posting, liking, and reposting. The social network said that this move was to reduce the number of bots on the platform, and wasn’t meant to be “a profit driver.”
Earlier this month, Reuters reported that since Musk’s takeover ad revenue has constantly dropped. So it’s not surprising for Musk to make moves to bolster subscription revenue.
As the company is trying to attract advertisers with former NBCU exec Linda Yaccarino as CEO, it is trying to publish metrics that look appealing. Earlier this month, Yaccarino said that X has around 245 million daily active users and 500 million daily posts.
Frequently Asked Questions (FAQs) related to “Elon Musk Confirms X Will Debut Two Premium Tiers Soon”;
Q1: What are the two premium tiers that X is introducing?
A1: X is launching two premium tiers. One will be priced below the current $8 per month plan and will still include advertisements. The other tier will be more expensive and provide an ad-free experience. Subscribers to the current premium plan are promised “half ads.” The exact pricing details were not mentioned by Elon Musk.
Q2: Why is X introducing these premium tiers?
A2: X is exploring new ways to increase its revenue. Ad revenue has been declining, and these premium tiers are an attempt to bolster subscription revenue. Additionally, there have been code sightings and rumors regarding the introduction of these tiers.
Q3: How do the new premium tiers relate to the EU court ruling on ad-free options?
A3: The introduction of an ad-free premium tier could be seen as a response to an EU court ruling that states users should have the option to choose an ad-free tier if they decline data processing by the company. However, it’s not confirmed whether this is the sole reason for the new tiers.
Q4: What is the $1 per year plan for new users in New Zealand and the Philippines?
A4: X recently started testing a $1 per year plan for new users in New Zealand and the Philippines. This plan covers basic functionalities like posting, liking, and reposting. The aim is to reduce the number of bots on the platform and is not primarily intended as a profit driver.
Q5: What are X’s current user metrics and ad revenue trends?
A5: X has around 245 million daily active users and 500 million daily posts, according to statements by CEO Linda Yaccarino. Ad revenue has been reportedly declining since Elon Musk took over as CEO, prompting efforts to attract advertisers and explore alternative revenue sources.
These FAQs provide insight into the introduction of new premium tiers on X and the related strategies to boost the platform’s revenue.