The platform formerly known as Twitter could soon employ a subscription model where subscribers have the option to pay more to see fewer ads. Bloomberg first reported that X owner Elon Musk is now considering a tiered option where the Basic tier would see the usual number of ads, the Standard tier would show half as many ads, and the top-level Plus would be free of ads entirely.
Currently, Premium tier users see about half the ads as the free tier.
A price plan for the three paid tiers isn’t known—nor is whether there would even be a free option for users. However, it was just last month that Musk suggested all users would be required to pay a subscription, a move he claimed would free the service from bots.
It might seem Musk is more concerned about making the service—which he paid $44 billion to acquire last year—profitable.
“Superimposing fee models from other industries is tricky and Twitter is in a precarious spot since it’s losing the trust of brands and users. It seems like a revenue grab,” said technology and social media analyst Susan Schreiner of C4 Trends.
“The situation at X/Twitter is hard to parse. As a privately held entity, it’s perfectly reasonable that the company would keep its financial/strategy close to its vest,” added Charles King, principal analyst at Pund-IT.
That could obscure or dilute public messaging about its progress, King noted. At the same time, the new tiered model seems like just the latest pivot that Musk has made, which suggests he is being more reactive than proactive in X’s long-term strategy.
X has seen a number of changes, including the removal of the legacy “verification” system, and just this month it removed headlines from shared news stories. The tiered subscription model may not win favor with users—especially with those who haven’t signed up for the premium option.
“Just how users will respond is hard to predict,” said King. “None of the competing platforms that have sprung up in the months since Musk purchased and rebranded Twitter have really taken off. However, pushing people to ‘freemium’ online services has seldom succeeded. If X/Twitter does go ahead with a subscription plan, it could inspire significant numbers of users to consider and begin using alternatives.”
Borrowing From The Streaming Model
As noted, a tiered model isn’t exactly a new concept, as it is already employed by streaming services including Peacock and Hulu. Yet, it isn’t clear if it is well-suited to social media.
“This is very much like a streaming model, with fewer ads based on payment tier. A key factor will be the actual cost. The higher the prices, the more casual users they’ll lose,” explained Greg Sterling, co-founder of Near Media. “On the other end, they might see some gains among professional users who still feel compelled to be on the platform. It remains to be seen. Twitter/X is no longer the public square it once was.”
Then there is the fact that advertisers will also see reduced reach under a tiered system.
“Clearly, Musk wants to monetize his platform more effectively and a subscription model might bring in some badly needed cash while CEO Linda Yaccarino attempts to rebuild or restore relationships with major advertisers,” King continued.
“Twitter/X has had modest success bringing back some of their top advertisers, but overall ad revenue remains way down. This plan is intended to compensate for those losses,” added Sterling. “I’m skeptical, given how broken Twitter/X has become, that this plan can really right the ship financially.”
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