In a recent update, X Corp, led by Elon Musk, revealed plans to experiment with three paid tiers of premium services. These new tiers, named Basic, Standard, and Plus, aim to offer customers varying prices based on the number of ads they are willing to view. Previously priced at $7.99 per month, the existing premium plan will now be diversified to attract a broader user base.
During a briefing, CEO Linda Yaccarino shared positive news about the company’s growth. Despite challenges, X Corp reported high single-digit revenue growth in advertising, data licensing, and subscriptions quarter-over-quarter. Yaccarino mentioned the company’s cash flow positivity, excluding debt servicing costs, and anticipated achieving overall cash flow positivity, including debt, by the latter half of 2024.
The introduction of these new service tiers is aimed at enticing users who might be hesitant to pay the full premium service price. Musk also floated the idea of implementing a small fee on all X users to tackle issues related to bots.
However, challenges persist, especially concerning the company’s substantial debt, inherited after Musk’s $44 billion acquisition of Twitter. With a debt of $13 billion, X Corp is navigating a delicate financial landscape. While Musk’s unconventional decisions have raised concerns among some advertisers, the company is working diligently to regain its previous revenue levels. Although 90% of the top 100 advertisers have returned, ad spending remains cautious, impacting the company’s efforts to boost its revenue.
Since Musk’s takeover in October 2022, X Corp has undergone significant changes, including staff reductions and service discontinuations. The company introduced a premium subscription and is now exploring additional avenues, including the three-tiered service approach. Musk envisions transforming X into an all-encompassing app, generating revenue through features like shopping and payments.
Despite the challenges, X Corp continues to evolve. Recently, the company secured a partnership with Paris Hilton and 11:11 Media to promote its live shopping and video products, indicating its commitment to expanding its offerings.
As X Corp ventures into these new service plans, the company remains determined to revamp its revenue streams and redefine its position in the digital landscape. Stay tuned for more updates on X Corp’s innovative ventures.