Leaked information from Twitter/X's back-end code suggests that Musk's team is about to introduce three X Premium subscription tiers.
Users can expect a Basic, Standard, and Plus package, each offering varying levels of ad exposure and features. This move marks a significant shift in X's revenue strategy and potentially affect other social media too if successful.
You may see Twitter/X user @aaronp613's xeet about the new X Premium subscription tiers below:
X Premium will be broken up into 3 tiers:
Premium Basic - Full Ads
Premium Standard - Half Ads
Premium Plus - No Ads pic.twitter.com/I0CyaQf2ME— Aaron (@aaronp613) October 5, 2023
What are the new X Premium subscription tiers?
As seen in the above xeet, X is planning on implementing a tiered subscription model. They are as follows:
- X Premium Basic: Entry-level tier that offers an attractive price point, but users can expect to see full ads in their feed
- X Premium Standard: Mid-tier package that provides a moderate ad experience, with half as many ads compared to the Basic tier
- X Premium Plus: Top-tier package that promises an entirely ad-free experience for users willing to invest in a higher price point
Why is X making this?
X's decision to overhaul its pricing structure is multifaceted. While aiming to generate increased interest in its subscription service, the company must also comply with European privacy regulations.
By offering an ad-free option, X may align with EU rules requiring social apps to provide users with the ability to opt out of data tracking for personalization purposes. Additionally, this paid ad-free option could offset potential losses resulting from stricter data collection policies.
Potential challenges ahead
While the ad-free subscription model may pose challenges for X, there are several factors at play:
Revenue share implications: A significant migration of users to the ad-free package might impact the revenue shared with creators, as ad revenue will likely decrease. X must find a balance between sustaining creator earnings and maintaining platform profitability.
Pricing strategy: X faces the challenge of determining the optimal pricing strategy to counterbalance lost ad revenue while still enticing users to upgrade to premium tiers.
User adoption: X's CEO, Elon Musk, has emphasized the need for users to pay for access to combat bots and AI-generated spam. Success hinges on a substantial portion of users adopting paid subscriptions.
Read also: Are Elon Musk charging for Twitter rumors true?
Privacy concerns: Although the ad-free option only applies to the "For You" feed, concerns about data collection and user privacy remain topical. X must navigate these concerns while demonstrating its commitment to protecting user data.
X's bold move towards tiered pricing and an ad-free subscription option marks a transformative shift in the platform's revenue model. As details continue to unfold, it will be intriguing to see how X navigates the complexities of pricing, revenue implications, and user adoption while upholding privacy regulations.
Now you: Do you consider paying for X Premium?
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