Today, in a notable development, Elon Musk, the influential figure behind the reins of X (formerly Twitter), officially announced the impending launch of two new premium tiers, corroborating earlier speculations and discoveries within the platform’s code.
According to Musk, one of the premium tiers is poised to be more affordable than the existing $8 per month plan but will retain the status quo in terms of ad display—no reduction in advertisements. On the other end of the spectrum, the second tier will command a higher price tag, yet it boasts the allure of a completely ad-free experience. The ongoing premium plan, which currently pledges to showcase “half ads” to its subscribers, remains a part of the platform’s offerings, with Musk abstaining from disclosing the pricing details for these freshly introduced tiers.
Interestingly, this revelation follows recent findings by @aaronp613, who unearthed references in X’s code pointing towards the existence of three distinct premium tiers. Bloomberg had also previously reported that X was actively experimenting with multiple paid plans, aligning with a strategic move to diversify and boost revenue streams.
In a parallel narrative, Meta, in response to a judgment by the EU Court advocating for user options on ad-free tiers in cases where data processing consent is withheld, is purportedly contemplating the introduction of an ad-free tier. TikTok, in a similar vein, recently confirmed ongoing tests for an ad-free tier, though the motivations behind X’s latest moves remain shrouded in uncertainty regarding their alignment with the EU Court ruling.
Under the stewardship of Elon Musk and his team, X has been exploring innovative avenues to fortify its revenue streams. A recent example includes the initiation of trials for a $1 per year plan aimed at new users in New Zealand and the Philippines. While this plan covers basic functionalities like posting, liking, and reposting, X emphasized that the objective was to curb the proliferation of bots rather than serving as a primary profit driver.
Reuters had previously reported a consistent decline in ad revenue since Musk assumed control, shedding light on the underlying motivations for these strategic shifts geared towards augmenting subscription revenue. Amidst these changes, the appointment of former NBCU executive Linda Yaccarino as CEO underscores X’s commitment to attracting advertisers. Yaccarino recently disclosed that X boasts approximately 245 million daily active users and facilitates 500 million daily posts, aligning with the platform’s efforts to present enticing metrics to potential advertisers.
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