Elon Musk announces new subscription tiers for X Premium
What's the story
Elon Musk has announced the launch of two new subscription tiers for his social media X's Premium service. Musk's announcement has stirred excitement and speculation among X users and the tech community at large. "One is lower cost with all features, but no reduction in ads, and the other is more expensive, but has no ads," Musk said in his post on X.
Twitter Post
Check out Musk's post
Two new tiers of X Premium subscriptions launching soon.
— Elon Musk (@elonmusk) October 20, 2023
One is lower cost with all features, but no reduction in ads, and the other is more expensive, but has no ads.
Insights
Previously, CEO Yaccarino hinted at bringing the new subscription model
This strategic shift in subscription tiers comes on the heels of a revelation earlier this month by X's CEO, Linda Yaccarino. In discussions with debt holders, Yaccarino had hinted at the introduction of a fresh three-tiered subscription model. Musk's new tier announcements align with this vision, enabling X to increase revenue from users reluctant to pay the full premium subscription fee.
What Next?
Musk has to repay X's growing debt
Prior to Musk's takeover and the rebranding to X, Twitter generated roughly $5 billion in annual revenue, primarily from advertising. X now faces the challenge of restoring that revenue while dealing with an estimated annual interest payment of around $1.2 billion for its debt. The new subscription plans may help boost revenue and draw more advertisers to the platform.