X, formerly Twitter, has rolled out its two premium tiers to boost subscription revenue under Elon Musk’s leadership.
One of the newly introduced subscription tiers is Premium+, priced at $16 monthly.
It comes at a higher cost than the existing Premium tier, but it offers an enticing benefit – an ad-free experience in the For You and Following feeds.
Additionally, Premium+ provides users with several other features, including increased visibility, the ability to edit posts, and the capacity to post longer videos, among other perks.
The original subscription offering, X Premium, remains available, starting at $8 monthly.
X is also launching a more affordable $3 per month tier for users who sign up via web browsers.
This tier will grant access to the most essential Premium features.
Advertising has traditionally been the major revenue source for X.
However, Musk has set an ambitious goal of having approximately 50 percent of the company's revenue generated through subscriptions.
This shift in focus on subscriptions was prompted by the need to address challenges in the advertising business.
Following Musk's takeover, the platform experienced a decline in advertiser confidence due to concerns about Musk's approach to content moderation and management.
In 2021, advertising made up nearly 90 percent of Twitter's revenue, marking the last full year of publicly reported financial results before Musk's privatization of the company.
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The new leadership, led by CEO Linda Yaccarino, a seasoned advertising industry executive, has been working to revamp and rebuild its advertising business.
While Yaccarino has reported some improvements in the ad business, including the return of 90 percent of the top 100 advertisers from the previous year, challenges remain.
Several advertising agency executives note that a substantial return of advertisers to X has yet to materialize, and those who do return are often spending less.
Musk also revealed that X's US advertising revenue saw a 60 percent decline following his acquisition.
