NIX Solutions: X’s Subscriptions Generate Modest Growth

Elon Musk’s attempt to reduce X’s reliance on advertising has yet to gain significant traction. The paid subscription service, initially launched as Twitter Blue in 2021, has earned $200 million since its debut, according to Appfigures data cited by TechCrunch.

However, this figure reflects only purchases made through the mobile app, excluding subscriptions via the desktop or mobile web versions, which may contribute higher revenue due to lower prices. Mobile transactions are also subject to app store fees, with current mobile revenue estimated at $140 million. This amount is expected to increase, as Apple and Google reduce their commission fees from 30% to 15% after the first year.

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Subscription Tiers and User Metrics

In December 2022, the platform reintroduced Twitter Blue and earned $11 million in mobile revenue over the following three months. A year later, the renamed platform X rolled out three subscription plans:

  • Basic: $4/month via the app, $3 via the web.
  • Premium: $11/month via the app, $8 via the web.
  • Premium Plus: $16/month, only available through the web.

By September 2024, X’s total in-app subscription revenue reached $14.7 million. Estimating the subscriber base remains challenging, as X is a private company and not required to disclose figures. If all revenue came from the most expensive in-app plan (Premium), X would have 1.3 million paying users. On the other hand, if all subscriptions were Basic, this number would rise to 3.7 million.

Appfigures suggests Premium is the most popular plan, followed by Premium Plus and Basic. If 70% of revenue comes from Premium, 20% from Premium Plus, and 10% from Basic, then X likely has around 1.4 million paying users in total. Notably, X’s in-app purchases increased 30% between Q2 and Q3.

Boosting Engagement with New Monetization Models

In addition to platform subscriptions, X offers other in-app purchases, such as subscriptions to bloggers. Musk remains the platform’s most followed user, now boasting 200 million followers. Assuming 0.025% of them are paid subscribers, Musk could have around 50,000 paying followers, generating $200,000 monthly at $4 per subscription.

Recently, X announced it would pay bloggers based on the engagement of premium subscribers, shifting from ad-revenue sharing. Since Premium Plus subscribers see no ads, this change may benefit bloggers. However, X’s administration will need to address potential issues, such as clickbait or low-quality content.

Despite efforts to grow subscription revenue, it remains a minor part of X’s overall income, notes NIX Solutions. The platform’s revenue for the first half of 2024 was $1.48 billion. Some advertisers have paused cooperation with X, though the company recently repaired relations with Unilever. We’ll keep you updated on how X’s subscription strategy evolves.