Elon Musk’s social media platform X is set for the new release of subscriptions. There are two sets of plans. The first plan will have all the features at a low cost but without the ad reduction. Whereas the second plan has high cost but is ad-free (without ads).
The details on the plan are very scarce but the announcement comes at the time when X is beginning to charge new users $1 in New Zealand and Philippines, for platform access. Elon is always in favor of charging for the services. He believes that this is the only way to combat the bots and fake accounts on the platform.
He is pushing for the paid services now known as premium X subscription to incentivize users. He has been actively courting advertisers back to X with special offers. For instance, some users are paying $8 per month for the blue check subscription service.
Also, X introduced its “Not a Bot” subscription method to avoid spam, bot activity, and manipulation. However, the fast manipulation of the platform has led to certain layoffs and the destruction of content moderation teams.
This has made the advertisers lay off their ads from the platform. Musk acknowledges the impact of revenue on X and has blamed activities for pressuring activities.
The launching of the premium plan is considered a development in X’s efforts to increase its income streams because it faces competition from Meta, Threads, and Bluesky while also going through important rebranding and restructuring since Musk took over in October 2022.
How Will the Subscription Affect the Influencers and Advertisers?
The new subscription plans known as ‘paid version’ rather than premium service plans on X have triggered speculation regarding how it will impact the advertisers and the influencers. They will be impacted in both ways – positive and negative.
It is very clear with the move that X wanted to diversify its source of income and also wanted to regulate the spam-free, bot-free environment. Influencers when subscribing to the X premium service will provide access to the blue check marks which show the authenticity and additional services like revenue sharing, creating incentives for users to pay.
On the other hand, these subscriptions raise the question about the future of influencer marketing. The one tier could potentially make the platform more attractive to influencers if they are able to bring a lot of users while if not, it will lead to revenue reduction.
Advertisers on the other hand show a complex relationship with Elon Musk due to a significant fall in advertising revenue. Also, one of the premium plans is ad-free. This will affect the advertisers.
X wants advertisers back on the platform. However, it is uncertain if the new subscription plans will attract advertisers like the pre-Musk period on the platform given that these plans are expensive.
Summary
Elon Musk announced two plans for X. Both are paid versions and are known as X premium subscription. Both plans differ on the basis of costs and presence of ads. One plan will feature ads and is low cost while the other will be pricier with no ads.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/24/musks-new-x-subscription-tiers-its-impact-on-influencers-advertisers/