Elon Musk-owned X, formerly known as Twitter, has raised the price of its premium-plus subscription tier in several markets starting December 21, as the social media platform seeks to boost payouts to creators. The premium-plus plan, which provides users with exclusive features, will now cost $22 a month in the United States, up from the previous price of $16, according to a blog post from the company. Meanwhile, the prices for the basic and standard premium tiers remain unchanged at $3 and $8 per month, respectively.
This price hike is part of X’s broader strategy to ensure that more subscription revenue is channelled directly towards creators on the platform. In October, X adjusted its revenue-sharing model to better align with the quality and engagement of content, rather than just advertising revenue. The move is intended to reward creators for producing content that resonates with their audiences, giving them a greater incentive to continue posting on the platform.
The updated pricing will apply to new subscribers, while existing members of the premium-plus tier will continue to pay their current rates until January 20, 2024. The company has not disclosed whether it will make any additional changes to subscription pricing in other markets.
Premium-plus subscribers receive a host of additional benefits, including ad-free browsing, which enhances the user experience by eliminating interruptions. They also gain access to expanded features like the Grok AI chatbot, which offers users more interactive and personalised capabilities. Additionally, premium-plus subscribers can utilise Radar, a real-time analytics tool that tracks emerging trends through keyword monitoring, helping content creators and businesses stay ahead of the curve in their online strategies.
Subscriptions have become a central part of Musk’s vision to grow X’s revenue base. Since acquiring the platform, Musk has shifted its focus away from the heavy reliance on advertising that characterised the company’s previous business model. Instead, he has worked to diversify revenue streams by introducing various subscription tiers and features aimed at increasing user engagement and providing value for content creators.
Under Musk’s leadership, X has also made several other changes, including a stronger emphasis on subscription-driven content and the creation of a more creator-focused platform. This shift is seen as a response to the growing competition in the social media space, particularly with platforms like Instagram, TikTok, and YouTube, which have successfully monetised user-generated content.
By increasing the premium-plus plan’s price, X aims to continue building a sustainable revenue model that doesn’t rely solely on advertising. The additional income generated from these higher subscription fees is expected to be used to support creator payouts, which Musk has described as a key factor in revitalising the platform and attracting new users.
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The subscription-based model also offers a way for X to remain competitive in the ever-evolving digital landscape, where advertisers are increasingly scrutinising their investments in social media platforms. With ad revenues fluctuating and facing increasing competition for advertising spend, X’s strategy of offering a more direct path for creators to earn money through subscriptions may provide a more stable and predictable revenue source for the platform.
While the price increase may be a concern for some users, especially those who are already paying for premium services, the potential for enhanced creator payouts and the added features could appeal to a significant number of users. For content creators, the change could be seen as a positive step, as it signals that their contributions are being valued more highly and that they stand to benefit from X’s evolving monetisation strategy.
In conclusion, the price hike for X’s premium-plus subscription tier reflects Musk’s ongoing efforts to reshape the platform’s business model. By focusing on creator compensation and expanding the suite of premium features, X aims to position itself as a more sustainable and user-centric platform in the competitive social media landscape. The changes, which will come into effect for new subscribers and existing users after January 20, mark another chapter in X’s ambitious bid to redefine the future of social media monetisation.
