Just weeks after Elon Musk dropped the bombshell that X could start charging users for access, the platform is reportedly testing out new subscription options.
Under the plans reported by Bloomberg, X will split its £9.60 monthly Premium offering into three tiers, which will be priced based on the amount of ads shown.
A prolific tech leaker first dug up references to the overhauled subscription scheme in the X mobile app. The info showed a basic option with the full number of ads, standard with half the amount of ads, and premium with no ads.
Currently, X shows paying members twice as much content between adverts as free users, according to the company’s subscription details.
X CEO Linda Yaccarino reportedly revealed the new plans in a make-or-break meeting with the company’s debt lenders. At least one estimate suggested that the platform is now worth a fraction of the $44 billion Musk paid for it last October, which could force the banks that supported the acquisition to take the reins.
During the briefing with lenders, Yaccarino painted a serene outlook for the company, which she joined four months ago. The former advertising exec said X is already cash-flow positive, and that revenue grew in the high single-digit percentage sequentially in the third quarter. By comparison, Musk warned in July that then Twitter was in a dire financial situation due to a 50 per cent drop in advertising sales.
X Premium will be broken up into 3 tiers:
— Aaron (@aaronp613) October 5, 2023
Premium Basic - Full Ads
Premium Standard - Half Ads
Premium Plus - No Ads pic.twitter.com/I0CyaQf2ME
Yaccarino’s tumultuous time at the helm recently culminated in an awkward interview in which she was quizzed about Musk’s rash decision-making. The former advertising exec appeared to be rattled by the suggestion that Musk blindsided her with his ambition to charge all X users a fee, a move he said would help quash bots.
Since then, the X owner (who oversees product changes to the service) has continued to implement divisive updates, including the recent removal of text from story links. Musk also announced on Friday (October 6) that the platform will soon hide retweet and like counts from the main timeline.
Offering more subscription tiers, including cheaper plans, could also be X’s way of converting hesitant users into paying customers. Ad-free social media is increasingly becoming the norm as platforms navigate a volatile digital advertising market and regulatory pressures. Both TikTok and Meta are said to be planning similar subscriptions.
