Musk Announces New Subscription Tiers for X Amidst Declining Traffic and Revenue Woes



Elon Musk, the owner of the social media platform formerly known as Twitter and now named X, has disclosed plans to introduce two new paid subscription options for its users. Musk stated on X, “One [tier] is lower cost with all features, but no reduction in ads, and the other is more expensive but has no ads.” However, the exact details surrounding the pricing of these new tiers remain undisclosed. It’s worth noting that X currently offers an $8 monthly subscription, known as X Premium, which offers several perks including account verification with a “blue checkmark”, editing capabilities for posts, and allowances for longer tweets and videos.

Countering Bots with Subscription Fees

Recent developments have shown X’s intent to combat bot activity on its platform. A testing phase was initiated this week where users in New Zealand and The Philippines were charged an annual fee of $1 to gain access to basic features such as posting and interaction. While Musk claims this fee to be pivotal in “fight[ing] bots without blocking real users,” there’s still ambiguity surrounding whether this $1 fee corresponds to one of the two new subscription tiers Musk mentioned.

Key Points:

  • Two new subscription tiers are to be introduced soon.
  • $1 annual fee being tested in New Zealand and The Philippines to counter bots.
  • The existing X Premium subscription is priced at $8 monthly.

X’s Evolution under Musk

Ever since Elon Musk’s acquisition of Twitter for $44 billion last fall, the platform has witnessed a series of transformations, both in terms of branding and operational strategies.


  • The iconic “blue bird” logo was replaced as part of a rebranding exercise.
  • Content moderation policies were relaxed.
  • Headlines and text from news article posts were removed.
  • Some previously banned accounts were reinstated.

The rebranding and these changes, especially the move to cut trust and safety teams, led to a significant exodus of advertisers. In July, Musk admitted to X experiencing a negative cash flow, predominantly attributed to a near 50% decline in advertising revenue and accumulated “heavy debt.”

Web Traffic and Competition

Despite the bold changes and strategic shifts, data analytics from SimilarWeb indicate a decline in the platform’s popularity. Traffic to saw a dip of 14% in September year-over-year. Furthermore, X’s ad platform,, experienced a 16.5% decrease in traffic. In stark contrast, global traffic to social media giant TikTok witnessed a substantial 22.8% increase.

Official Statements Versus Data

Contradictory to the data, Musk, along with X’s CEO Linda Yaccarino, has expressed optimism about the platform’s usage metrics. Yaccarino mentioned in a memo to the company’s staff in July that their “usage is at an all-time high” and emphasized the company’s continued efforts to enhance user experience through new multimedia features, global marketplaces, and more.

Seeking Stability through Subscriptions

With declining advertising revenues, the emphasis on subscription models seems to be a strategic move to stabilize and potentially diversify X’s income streams. This approach mirrors strategies seen in video streaming services like Netflix. Musk’s plan to introduce multiple subscription tiers further underscores the company’s intent to explore every avenue to ensure financial stability and growth.

The Broader Implications

The move by X to introduce subscription fees might set a precedent for other social media platforms. If successful, we could see a ripple effect where other social networks also consider introducing premium or tiered user experiences, free from advertisements. However, the challenge lies in ensuring that the value proposition justifies the cost for the end-user. In a digital age characterized by a plethora of free content and platforms, users have become accustomed to accessing social media without direct monetary costs.


X’s journey under Musk’s leadership has been filled with both challenges and opportunities. The newly announced subscription tiers might be the solution X needs to counterbalance the loss from advertising revenues. However, only time will tell if these changes can restore the platform’s declining user base and position it as a leading player in the competitive social media arena.

Amidst the changing digital landscape, X’s strategy appears to be a blend of innovation and risk-taking. While the platform’s pivot from an advertisement-based revenue model to subscription-based offerings is a notable shift, it also raises questions about the long-term sustainability of such a model in the social media space, a sector historically dominated by ad revenues.

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