Elon Musk introduce a nominal monthly fee for all users

In a significant move, Elon Musk has revealed plans to introduce a nominal monthly fee for all users of his revamped social media platform, X (formerly known as Twitter). This announcement comes in the midst of X’s ongoing efforts to rebuild trust with advertisers, signaling a departure from the traditional advertising revenue model.

The Live-Streamed Revelation

Musk made this announcement during a live-streamed event on X, where he engaged in a conversation with Israeli Prime Minister Benjamin Netanyahu. The decision’s significance lies in the context of X’s struggles with a 60% drop in Twitter’s ad revenue in the United States. Musk attributed these challenges to the pressure exerted by civil rights and consumer advocacy groups on prominent brands.

Addressing Concerns About Bots and Hate Speech

During the live discussion, Netanyahu raised concerns about the proliferation of bots amplifying hate speech on the platform. Musk responded by stating, “The primary reason for introducing a modest monthly fee for X usage is that it represents the most effective strategy to counter the extensive armies of bots.”

Musk elaborated on how the subscription model would deter bots, as each bot account would require a unique credit card registration. He also mentioned the company’s intention to introduce a more affordable pricing tier compared to the existing X Premium subscription, which costs approximately $8 per month.

A History of Teasing and Revision

It’s essential to note that Musk has a history of teasing new products or ideas and later revising his plans. Thus, the final implementation of the subscription model may undergo further adjustments.

Shifting Landscape in Social Networks

Traditionally, social media platforms rely on advertising revenue, but an increasing number of companies are exploring subscription-based offerings due to challenges in the advertising market.

Data indicates that the adoption of Premium X, the rebranded subscription product formerly known as Twitter Blue, has been relatively slow. As of the end of April, third-party estimates suggest that around 640,000 to 680,000 individuals had subscribed to Twitter Blue.

Twitter initially introduced Twitter Blue in 2021, and Musk made significant changes to the subscription offering last November. These changes included raising the price and restricting access to Twitter’s verification system exclusively to paid subscribers.

Elon Musk’s decision to introduce a monthly fee for X users marks a pivotal moment in the evolution of social media platforms and their revenue models. It remains to be seen how this shift will impact user engagement, advertiser trust, and the broader social media landscape.