X Struggles to Boost Subscription Revenue Despite Growth Efforts
Elon Musk’s X, formerly Twitter, continues to face challenges in expanding its subscription-based revenue streams. Despite introducing new tiers and features, the platform’s paid user growth remains sluggish.
Mobile Revenue Insights
According to app intelligence firm Appfigures, X generated approximately $200 million in in-app purchase revenue across iOS and Android since the 2021 launch of Twitter Blue, rebranded as X Premium. However, this figure only accounts for mobile app purchases, excluding web-based transactions.
Commission Fees and Revenue Projections
After deducting app store commissions, X’s estimated revenue drops to at least $140 million. Considering Apple and Google’s discounted commission rates for established developers, the actual revenue may be higher.
Subscription Tiers and User Estimates
X offers three subscription tiers: Basic ($4/month), Premium ($11/month), and Premium Plus. Assuming the top-tier subscription drives most revenue, X may have around 1.3 million paying users. Alternatively, if Basic subscriptions dominate, the platform could have up to 3.7 million paid users.
Growth Prospects and Creator Content
Quarterly revenue growth for X Premium jumped 30% from Q2 to Q3, indicating potential momentum. Additionally, X’s plan to pay creators based on engagement from Premium subscribers aims to boost user growth and content quality.
Revenue Streams and Advertiser Relations
Subscriptions still constitute a small portion of X’s overall revenue, which totaled $1.48 billion in the first six months of 2024. The company’s efforts to repair relationships with advertisers, including a recent deal with Unilever, may help diversify revenue streams.
Key Takeaways
– X struggles to grow subscription revenue despite new features and tiers.
– Mobile revenue estimates suggest slow user adoption.
– Creator content and engagement-based payments may boost growth.
– Advertiser relations and revenue diversification remain crucial.
