In yet another move to bolster the flailing social media company’s revenue, Elon Musk has confirmed that X/Twitter will have an additional two tiers for subscriptions.
Since Elon Musk bought out Twitter and rebranded it as X, it’s estimated the company has lost a total of 90% of its value. From advertisers leaving in droves, to a hate speech epidemic and laying off staff, it’s been a rocky few months for Musk’s new purchase.
Now, the tech mogul has confirmed an additional two subscription tiers, alongside its latest addition this week. Joining the $1 yearly fee that’s currently in testing, a total ad-free tier, and one that “is lower cost with all features, but no reduction in ads” according to Musk’s post.
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
X’s new subscription tiers don’t have a launch date or even pricing yet, but as with anything Musk, it could be hours to weeks or even years before we see the feature implemented.
It’s unclear if the original $8 X Premium (formerly Twitter Blue) will be eliminated and replaced, or if it’ll sit alongside these new tiers. Currently, if you’re subscribed, you’ll see about 50% fewer adverts in your feed.
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X to get two new subscription tiers to help revenue issues
Advertising has been changed again recently, with some ads no longer having the same properties as a tweet, as they originally did. This means you can’t hide or block the accounts they come from.
The news of these two tiers originally leaked from Bloomberg earlier this month. Linda Yaccarino, CEO of X, hosted a call with Twitter/X’s debt holders to discuss the revenue issue. Bloomberg got wind of the call and now estimates that Musk’s X owes $1.2 billion dollars in interest on top of the outstanding debt.
It’s also been estimated that most advertisers have since returned to X, but are now spending 90% less than before the buyout. Yaccarino used Visa as an example of a returning customer, but it turns out they spent just $10 in the last 12 weeks from October 6 backward.
X is fraught with turbulence and we expect to see yet another update about the platform’s subscriptions in the coming days.