In Elon Musk’s latest Twitter (now X) experiment, the platform has introduced an annual $1 subscription fee for new users in New Zealand and the Philippines.
This fee is required for these users to access basic features like posting tweets, replying to messages, and liking posts. Although this trial currently affects only two countries, it has raised concerns about the potential for broader implementation.
X has named this subscription “Not A Bot,” signifying its intent to combat spam accounts. The company explained that new unverified accounts in these countries will need to sign up for this annual subscription, with existing users remaining unaffected.
The primary aim, X claims, is to enhance their existing efforts to reduce spam, bot activity, and platform manipulation while balancing accessibility with a nominal fee.
X has been on the hunt for new revenue streams as it grapples with a decline in advertising sales since Elon Musk’s acquisition last year.
His takeover initially prompted advertisers to flee the platform due to concerns about moderation policy changes under his ownership. Reports revealed that half of X’s top 100 advertisers abandoned ship.
Musk’s decision to transform X’s blue tick verification system into an $8-a-month subscription service didn’t sit well with advertisers. Big names like Volkswagen, General Motors, and Pfizer paused their campaigns in response to these changes.
Elon Musk incurred a substantial debt burden on X when he purchased the social networking site for $44 billion last year, amounting to a whopping $13 billion in debt.
The interest payments alone set him back $1 billion per year. This financial strain has taken a toll on X’s business.
Linda Yaccarino, X’s CEO, has been working diligently to mend relations with advertisers, but despite her efforts, the platform continues to struggle.
Web traffic to X’s advertising portal plummeted by 16.5% following Musk’s takeover in October last year. Overall visits to the platform are down 14%.
While most social networks have been experiencing a drop in visitor numbers, Elon Musk’s X profile has seen a remarkable 96% increase in visits since he took the reins.
However, these changes have not translated into lasting improvements when it comes to competing with platforms like TikTok, which has seen a substantial 22.8% increase in global web traffic in September.
In Musk’s latest move, X’s trial subscription fee may alleviate some concerns, but its long-term impact on the platform’s financial health and user base remains to be seen.
Source: The Telegraph