Elon Musk faces challenges in reducing SpaceX’s reliance on advertisements and increasing paid subscriptions.

Elon Musk is struggling to reduce the dependency of the X platform (formerly known as Twitter) on advertising revenue, as he aims to increase revenue from paid subscriptions. However, recent analysis has shown that these efforts have not yet achieved the desired success.

According to a report released by Appfigures, the X platform has generated revenue of approximately $200 million from in-app purchases through the iOS and Android systems since the launch of the “X Premium” service in 2021. This figure does not include revenue generated from purchases through the web or computer, meaning that actual revenues may be higher. However, the fees imposed by app stores have reduced the platform’s net profits, with net profits estimated at around $140 million after deducting app store commissions.

It is worth mentioning that Google and Apple’s commissions decrease from 30% to 15% after the first year of subscription. Despite the launch of the paid subscription service in December 2022 under Musk’s supervision, which included expanding the paid options to generate sources of income beyond advertising, the platform has only generated $11 million in sales in the first three months.

In the following year, X introduced additional subscription options such as “Premium Plus” and “Basic,” but determining the actual number of subscribers to these services remains complex. The platform also launched a new program to support content creators, allowing them to receive rewards based on subscriber interaction in the X Premium service, instead of relying solely on advertising revenue.

However, this system faces challenges related to the potential spread of controversial content seeking engagement. Despite all these efforts, subscriptions still represent a small percentage of X platform’s overall revenue, as the company generated revenue of approximately $1.48 billion in the first half of 2024, confirming the platform’s continued reliance on advertising as a primary source of revenue.