Elon Musk, the CEO of X (previously Twitter), alluded to a major change in the platform’s revenue approach at a recent meeting with Israeli Prime Minister Benjamin Netanyahu. Musk made the suggestion that all users of the social networking site might be subject to an obligatory paywall.

After Musk purchased X in October 2022, the platform experienced a significant metamorphosis. With over 200 million posts made every day by its roughly 550 million monthly users, X has developed into something far different from its Twitter beginnings.

For a monthly cost of $11 in the US, X Premium, formerly known as Twitter Blue, is a subscription service that allows paying users to automatically receive a verified blue checkmark. During the early phases of X’s rebranding, Musk added the ability for users to conceal their premium blue checkmarks.

Struggle with Falling Advertising Revenue

X is considering enforcing a mandatory paywall in response to a drop in its advertising revenue, which has long been its main source of income. Musk claims that X’s advertising revenue has decreased by a staggering 60%. This allegation has sparked debate and issues within the industry.

Potential Consequences

X’s current revenue model would be drastically altered if it were to impose a paywall that is required for all users. A maneuver like that could have a number of effects:

Revenue Diversification: By making a paywall essential, X may be able to diversify its revenue sources and become less dependent on advertising.

User Experience: Individuals who are used to free access to X may feel differently about a required membership charge.

Effect on Advertisers: The platform’s user demographics may vary, which could have an impact on advertisers and the efficacy of their advertisements.

Material Quality: Since users who pay for access could have different expectations than those who use it for free, a paywall could promote the creation of higher-quality material.

Competitive Environment: X’s choice may have an impact on how other social media companies monetize their platforms.

While Musk’s remark suggests a possible change, it’s crucial to remember that the details of any planned paywall—including access and pricing—remain hidden. X users and industry watchers will be keeping a close eye on changes in the upcoming months as Musk leads the platform’s ongoing evolution.