X is considering an expansion of its premium subscription offering, in an effort to reinvigorate its growth, attract a broader and more diverse audience, and increase its revenue volume.
During a briefing with investors and debt holders, X Corp., the parent company of the social network, announced that it is currently in the process of testing three levels of premium service, according to researcher Aaron, in his X account. These tiers, called Basic, Standard and Plus, will allow users to choose between different options depending on their ad viewing preference.
The Basic level will include full ads; the Standard tier will cut the number of ads in half, and the Plus tier will offer an ad-free experience. This information was announced by the platform’s executive director, Linda Yaccarino, during said Thursday briefing with debt holders, according to Bloomberg through information received from a participant in said meeting.
The goal of this strategy is to diversify subscription options and appeal to a broader audience, which could be especially attractive to those who may not want to pay full price for the current premium subscription, which currently costs $7.99 per month. (7.58 euros monthly)
Yaccarino highlighted high single-digit revenue growth quarter over quarter in key areas such as advertising, data licensing and subscriptions. Despite inherited debt of $13 billion (€12,325.82 million) after Musk’s acquisition of the platform, the company has already managed to generate positive cash flow, even taking into account service costs. Of the debt.
In addition to the expansion of subscriptions, Musk had previously mentioned his interest in implementing a small monthly fee for all X users as a measure to combat the presence of bots on the platform.
Although the launch date and specific pricing for the new subscription tiers have yet to be announced, this expansion represents an important step in X’s efforts to adapt to the changing needs of its audience and recoup lost revenue.