X, formerly known as Twitter, is reportedly exploring a significant shift in its premium subscription service, aiming to enhance profitability by 2024. According to recent reports, the social media giant is considering splitting its existing $8 Premium subscription into three distinct membership tiers: Basic, Standard, and Plus.
What Are the Proposed Changes?
- Basic Tier: In the new arrangement, the Basic tier is expected to be the entry-level offering. However, unlike the existing premium subscription, it won’t reduce the number of ads users see on the platform. This tier is likely to appeal to users seeking the core Twitter experience without a hefty monthly fee.
- Standard Tier: For those willing to pay a bit more, the Standard tier will provide a compromise. It is expected to display half as many ads as the free version, offering users a more ad-light experience. This tier may attract users who find value in reduced ad exposure.
- Plus Tier: At the top of the lineup will be the Plus tier, which promises an ad-free experience. While the exact pricing for this premium offering is yet to be disclosed, it may exceed the current $8 monthly subscription cost. The Plus tier is expected to cater to users who prioritize an ad-free browsing experience.
The Road to Profitability
X CEO Linda Yaccarino has shared insights into the company’s path to profitability. She revealed that X’s advertising, data licensing, and subscription revenue are experiencing consistent growth, quarter after quarter, with strong returns from advertisers. She expressed confidence in the company’s potential to turn a profit by early 2024.
Intriguingly, Yaccarino disclosed that 90 percent of the top 100 advertisers have returned to the platform in the last 12 weeks alone, indicating a resurgence in confidence among advertisers. Approximately 1,500 advertisers have also made their way back to the platform.
What’s Next for X?
While these proposed changes could mark a significant transformation for X’s premium subscription model, it’s essential to note that neither X nor its owner, Elon Musk, have officially confirmed these reports. As such, it remains to be seen whether these changes will be implemented and, if so, how they will affect X’s user base and revenue streams.
In summary, X’s potential shift to a three-tiered premium membership system reflects the platform’s ongoing efforts to diversify revenue sources and achieve profitability. The introduction of these tiers, tailored to different user preferences, may allow X to strike a balance between user experience and revenue generation. As the company continues to evolve, it will be interesting to observe how these changes shape the future of the platform and its interactions with advertisers and users alike. Stay tuned for further developments in the world of X.