Social network X, known for its platform updates and business pivots, is actively restructuring its subscription strategy to boost profitability. This update emerged from remarks made by the company’s chief executive, Linda Yaccarino, during a creditor briefing, with coverage from Bloomberg lending context to the discussion.
The plan involves dividing the current premium tier, which is priced at eight dollars, into three distinct levels: Basic, Standard, and Plus. Under the proposed scheme, Basic would maintain the current advertising load, Standard would reduce the ad volume by about half, and Plus would offer a version of the service free from ads altogether. This staged approach is designed to give users clearer choices while allowing X to monetize differently across segments and usage patterns.
Yaccarino indicated that the tiered subscription structure is intended to help the company achieve a balanced financial trajectory in the latter half of the year. She highlighted that X has already generated profit that does not factor in the costs associated with servicing roughly 13 billion dollars of debt, underscoring that efficiency and monetization improvements are central to the company’s strategy.
The news about the three-tier subscription model gained additional attention when a user spotted references to it in the coding for the iPhone app. This discovery sparked speculation that X is preparing to roll out the revised subscription framework in the near term, aligning product changes with broader efforts to optimize monetization and user experience.
Meanwhile, Elon Musk, the owner of X, has previously floated the idea of instituting a universal fee to access the service. His proposal aims to curb bot activity and improve overall platform integrity, a topic that continues to surface in conversations about how social networks balance openness with controls on automated accounts.
In related commentary, Musk’s public statements have at times connected new pricing concepts with the ongoing challenge of maintaining a safe and authentic user environment. The broader industry context includes ongoing debates about how subscription models can fund platform investments, content moderation, and product development, while still appealing to a wide, diverse audience across North America and beyond.
The situation illustrates a broader trend in social media business models where paid tiers coexist with free access, and where publishers experiment with tiered advertising exposures as a means to align user value with revenue generation. Observers are watching how X’s proposed tiered pricing and ad placements will influence user behavior, advertiser relationships, and competitive dynamics among major platforms in Canada and the United States.
Overall, the move to a multi-tier subscription structure reflects a strategic attempt to diversify revenue streams and strengthen financial resilience. By offering options that preserve existing ad-supported experiences while progressively increasing control over ads or eliminating them for higher-tier subscribers, X aims to satisfy different user preferences and usage patterns while refining its profitability outlook for the upcoming period.