Elon Musk Reveals X's Dual Subscription Plans

X, the social media platform formerly known as Twitter, is set to introduce two new subscription tiers for its users, according to an announcement made by its owner, Elon Musk, on Friday (20/10).

The first subscription tier will offer a "lower cost with all features, but no reduction in ad," Musk stated.

Meanwhile, the second tier will be "more expensive, but has no ads."

This week, X disclosed its plans to initiate a test phase in New Zealand and the Philippines, where users will be charged $1 annually to enable them to "post and interact with other posts."

This measure is part of an initiative aimed at combatting spam and bot activity on the platform.

Users who choose not to participate in this subscription will still have access to reading posts, but their interaction capabilities will be limited.

It remains uncertain whether the $1 annual subscription is one of the two new tiers that Musk is alluding to.

X already offers a $8 per month subscription service called X Premium, which grants users the coveted blue checkmark on their profiles, signifying account verification, and provides additional features such as post editing.

Since Elon Musk took the reins of Twitter in October 2022 and rebranded it as X, the platform has witnessed sweeping changes, including downsizing trust and safety teams and withdrawing blue checkmarks from nonpaying accounts.

The blue checkmark was a tool for users to distinguish genuine accounts of public figures.

Musk has also reinstated previously banned accounts on the platform.

However, these changes have led to a decline in advertiser interest.

In July, Musk revealed that X was experiencing negative cash flow due to a significant drop of nearly 50% in advertising revenue and the burden of heavy debt.

The introduction of new subscription options could be a strategic move to bolster the company's financial outlook and create fresh revenue streams.

X is facing competition from emerging players like Meta's Threads and Bluesky, which adds to the challenges the platform is currently confronting.

Arjun Kharpal / CNBC