Elon Musk’s attempt to boost X’s revenue through paid subscriptions hasn’t been as successful as expected. A recent analysis by Appfigures revealed that X has only generated around $200 million in in-app purchases on iOS and Android since the launch of the Premium subscription service in 2021. However, this figure only accounts for purchases made through the mobile app, not the web, so the actual revenue may be higher.
After factoring in commission fees, X is estimated to have made at least $140 million. This number could increase further due to Apple and Google reducing commission rates in the second year. Despite efforts to promote subscriptions, X only brought in $11 million in the first three months after relaunching Twitter Blue as Twitter under Musk in December 2022.
X offers three subscription tiers – Basic, Premium, and Premium Plus – each with different features and pricing. The most popular subscription is X Premium, priced at $11 per month, which generated $14.7 million in in-app purchases in September 2024. While it’s unclear how many users are paying for Premium subscriptions, estimates suggest around 1.3 million paid users.
In addition to subscriptions, X also offers in-app purchases for subscriptions to top creators on the platform. For example, Elon Musk and @stevewilldoit have large followings, with a small percentage of followers subscribing to their content. These additional revenue streams are part of X’s strategy to expand its user base through creator content.
Despite these efforts, subscriptions still make up a small portion of X’s total revenue, which was reported at $1.48 billion in the first half of 2024. The company’s decision to pay creators based on engagement from Premium subscribers instead of ad revenue is aimed at attracting more subscribers, but it may also lead to clickbait or controversial content.
Overall, X is facing challenges in transitioning to a subscription-based model and reducing its reliance on advertising revenue. The company’s recent actions, such as alienating advertisers and trying to repair relationships, highlight the complexities of this shift in strategy. As X continues to evolve, it will be interesting to see how these changes impact its financial performance and user engagement in the long run.
