Elon Musk is facing a challenge in his attempts to reduce X platform’s (formerly known as Twitter) reliance on advertising revenue by increasing paid subscriptions, as independent analyses have shown that the plan has not yet achieved the expected success.
According to a report by Appfigures, X platform has generated approximately $200 million in revenue from in-app purchases on iOS and Android devices since the launch of the “X Premium” subscription in 2021.
Although this figure does not include purchases made through the web or computer, meaning that actual revenue may be higher, the fees deducted by app stores have reduced the platform’s net profits, estimated at around $140 million after commissions.
It is worth noting that Apple and Google’s commissions decrease from 30% to 15% after the first year of subscription.
Since the relaunch of the subscription service in December 2022 under Musk’s supervision, which included expanding paid subscriptions to diversify revenue sources away from advertising, X recorded revenues of only $11 million in the first three months of in-app sales.
In the following year, the platform added additional subscriptions like “Premium Plus” and “Essential”, but it remains difficult to determine the actual number of subscribers in these services.
As part of supporting content creators, X announced a new program that allows them to receive rewards based on the interaction they receive from subscribers in the X Premium service, instead of relying on a share of advertising revenues.
However, this new system comes with challenges, such as the possibility of more controversial content seeking to attract interaction.
Despite these efforts, subscriptions still represent a small part of X’s overall revenues, as the company’s revenues in the first half of 2024 reached approximately $1.48 billion, reflecting the continued significant reliance of the platform on advertising.
Source: [TechCrunch](https://techcrunch.com/2024/10/15/elon-musks-x-still-struggles-to-grow-subscription-revenue/)
