Elon Musk has launched two new price tiers for X Premium, including an ad-free 'Premium+'. The new tiers are priced at $US3 per month for 'Premium Basic' and $US16 per month for 'Premium+'.
Premium Basic includes some add-on features, including post editing, longer posts, and encrypted DMs. It also gives users a small reply boost, meaning that their posts in the app are more likely to be seen. However, Premium Basic users do not get a blue checkmark or eligibility for X's ad revenue share program.
Premium+, on the other hand, includes all of the X Premium incentives, including the removal of ads from the user's experience. Premium+ users also get the largest reply boost and access to every subscriber benefit.
The "Premium Basic" package, priced at just $3 per month, offers users a cost-effective way to enhance their X experience. While it doesn't grant you a coveted blue checkmark, it does come with several appealing features.
These include post editing, longer posts, and encrypted direct messages (DMs). Additionally, "Basic" subscribers receive a "small reply boost," increasing the visibility of their posts on the platform.
The nature of this "small reply boost" remains somewhat ambiguous, with X still fine-tuning the levels of preference given to verified accounts versus non-verified accounts. The effectiveness of this feature may hinge on factors such as the number of new sign-ups and their influence on content rankings.
However, it's essential to note that "Basic" subscribers will enjoy only a limited boost, potentially making it a less enticing incentive.
It's worth highlighting that "Basic" subscribers miss out on one significant perk - the coveted blue checkmark. While many of the additional "Basic" features are tailored to active posters, the reality is that approximately 80% of X users never post, potentially limiting the appeal of these options, even at a low $3 monthly fee.
The absence of a blue tick, which merely indicates a paying user rather than a high-profile figure, might also reduce its lure.
Another drawback for "Basic" subscribers is their ineligibility for X's ad revenue share program. This means they won't benefit from the platform's ad-generated income, a point to consider when deciding on a subscription tier.
The "X Premium+" tier, available for $16 per month, combines all the features of X Premium with a significant addition – an ad-free experience. This premium pricing is intended to offset the ad revenue loss that X will incur due to the absence of ads.
While an ad-free experience may be a major draw for some users, it raises the question of whether paying $168 annually for X (the discounted annual package) is a worthwhile investment for most. The value of ad-free browsing, when compared to the annual subscription cost, may not be compelling for many users.
Premium+ subscribers receive the full array of X Premium benefits and an enticing feature – the "largest reply boost." This boost aims to maximize the visibility of their posts. The actual impact may vary based on overall subscription adoption. Users who opt for Premium+ can expect their posts to receive more attention while enjoying an ad-free experience.
This move to expand subscription options aligns with X's strategy to encourage more users to subscribe. A growing number of paid subscribers could discourage bot farms, as non-subscribers without checkmarks may be more easily identified. However, the new Basic package doesn't offer a checkmark, limiting its effectiveness in this regard.
Elon Musk's approach to managing X is heavily influenced by his personal ideology and perspective, which doesn't always align with what's best for the business. Musk's involvement in decision-making regarding divisive topics and his reliance on unconventional sources raise concerns, especially for advertisers.
As less than 0.5% of users have subscribed to X Premium, it remains to be seen whether the introduction of lower-priced tiers will drive more subscriptions. Additionally, X's $1 fee for new account engagement is an experiment that may impact the platform's revenue stream. The future direction of X and its subscription strategy is yet to unfold.
Conclusion:
X's introduction of new subscription tiers reflects its ongoing efforts to attract more paid subscribers. While the value of these new tiers varies, they offer users a range of choices and may contribute to diversifying X's revenue streams, potentially lessening its reliance on ad dollars and giving Elon Musk a stronger influence on the platform's direction.