Elon Musk says that ‘X,’ the social media platform formerly known as Twitter, is launching two new subscription tiers for users.
On social media, Musk said that one tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads.”
This week, X announced that it is trialing a new $1 per year charge for all users in New Zealand and the Philippines with plans to roll that charge out more broadly in 2024.
X said the $1 a year subscription charge is aimed at combatting spam and bot activity on X. People who refuse pay the $1 fee will only be able to read posts on X.
It’s not clear if the $1 annual subscription is one of the two new subscription tiers that Musk mentioned.
The social media company already has an $8 U.S. per month subscription service called “X Premium” that provides users with a blue verification checkmark and allows them to edit posts.
Since taking over Twitter in October 2022 and rebranding it as X, Musk cut thousands of staff, removed the blue checkmark from non-paying accounts, and reinstated previously banned accounts on the platform, including that of former U.S. President Donald Trump.
Musk’s decisions have driven away advertisers. In July, Musk said X’s cash flow remains negative because of a 50% drop in advertising revenue on the social media site.
Subscriptions are seen as a way to boost the company’s finances and open new revenue streams.
Musk also took X private after acquiring the company for $44 billion U.S. The stock of X is no longer traded on a public exchange.
