Elon Musk Launches New Price Tiers for X Premium, Including an Ad-Free 'Premium+'

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Elon Musk Launches New Price Tiers for X Premium, Including an Ad-Free 'Premium+'
28 Oct 2023
5 min read

News Synopsis

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.

Premium Basic - A Budget-Friendly Option

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.

Evaluating the 'Small' Reply Boost

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.

Premium Basic's Limitations

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.

Exclusion from X's Ad Revenue Share Program

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.

Premium+ - The Ad-Free Experience

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.

Assessing the Value of Ad-Free Browsing

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.

Additional Benefits of Premium+

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.

X's Push for Increased Subscriptions

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 Ideology and Its Impact

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.

The Path Forward for X

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.

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