X, the platform formerly known as Twitter, is making significant changes to its business model and relationship with advertisers. Here are the key developments:
Live Streaming Goes Premium
X announced that live streaming capabilities will soon be restricted to premium subscribers only. This includes:
- Creating live video streams on the platform
- Using encoders with X integration for streaming
This marks the first time a major social media platform has put live streaming behind a paywall. Competitors like Facebook, Instagram, YouTube, and TikTok continue to offer free live streaming.
X Premium subscriptions currently range from $3/month for the basic tier up to $16/month for Premium+. The company did not specify an exact date for when the live streaming restriction will take effect.
Musk Softens Tone Towards Advertisers
At the Cannes Lions Festival, Elon Musk attempted to clarify his controversial go f**k yourself comments to advertisers from November 2023:
- Musk stated his remarks were not directed at advertisers as a whole
- He emphasized the importance of having a global free speech platform
- Musk acknowledged advertisers' right to appear next to brand-compatible content
- However, he maintained opposition to advertisers insisting on censorship
This softer stance comes as X's ad business shows signs of recovery:
- CEO Linda Yaccarino reported 65% of advertisers have returned since January
- The company is focusing on smaller businesses to recoup ad revenue
Ongoing Business Model Shifts
X continues to explore alternatives to ad-supported revenue:
- Pushing job listings, AI chatbots, and subscription services
- Pursuing financial transaction capabilities
- Testing $1 annual fees for new accounts in some regions
However, advertising remains X's primary revenue source for now. The company faces the challenge of balancing Musk's free speech vision with advertiser concerns and financial realities.
As X implements these changes, it will be crucial to monitor user reactions and whether other platforms follow suit with similar restrictions or monetization strategies.