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Paywall would "sound the death knell for X"

ended 19. September 2023

There is speculation that X, formerly known as Twitter, could end up behind a paywall, following Elon Musk saying the platform was “moving to a small monthly payment” in a live-stream with Israeli Prime Minister Benjamin Netanyahu yesterday. Musk said it was a way to combat the bots that have plagued the platform.

Social media experts were unimpressed, with one suggesting charging people and businesses to use X could be the final nail in the coffin of the once dominant social media platform.

“If a pure subscription really is the only feasible model moving forward, this could sound the death knell for X”, said Ben Foster, CEO at Sheffield-based digital marketing agency, The SEO Works. “Most people will not be prepared to pay for something they can get elsewhere for free. Without people and debate, the platform loses its impact. Even with the change of name, the brand is toxic for some advertisers, and with a massively reduced audience it will be even less appealing.”

Tom Anderson, CEO at Peterborough-based digital marketer, Hummingbird Agency, was also sceptical and said this was as much about generating revenue as ridding the platform of bots: “This is essentially Elon trying to recoup some of the billions he has spent. Twitter, now X, has never managed to positively monetise its platform for users and this will almost certainly see a drop in active accounts. Why pay for something you can get for free elsewhere?”

Lee Petts, founder at Preston-based marketing agency, Fifty2M, agreed: “This was inevitable. Twitter, or X, has reportedly lost a lot of ad revenue since Musk took over, and he needs to get a return on the $44 billion he spent buying the platform, so a subscription model makes sense. Will it get rid of the bots? Maybe, but user numbers will plummet too because apart from a hard core of mouthy political types that enjoy barking into an echo chamber, I don't imagine a lot of users will hang around if they have to pay.”

But John Lamerton, bestselling business author and lifestyle business owner at Big Idea Ventures, was upbeat and believed it could work: "16 years of an advertising-supported model resulted in $1.4bn in net losses for Twitter. Musk has well and truly burned his bridges with advertisers, so this is probably his best bet to recoup his $44bn investment. I actually think it will work, too. Musk has created an "us and them" culture at X, one that could very well lead to "us" being willing to put our hands in our pockets to keep "them" out."

Jessica Ross, CEO at Smashtag Social, also suggested that platform could be on its last legs: “Twitter, or X, doesn’t offer enough return on investment for brands to consider paying simply to be on there. Any time there is a cost involved you have to be able to justify the payment, and right now the platform is heading the same way as the dodo.”

Meanwhile, Alex Curtis, founder of Peterborough-based The Lead Engine, said making people pay to use X went against everything it stood for: “Making Twitter, or X, paid-only feels like going against the entire ethos of Twitter and what it was created for.”

Blogger John McCrea of Tales From Absurdia was also scathing: "Musk wants to turn X, formerly Twitter, into an 'everything' app. But right now it's a 'nothing' app. Asking for a fee before adding any game-changing features is foolish."

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9 responses from the Newspage community

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Ben Foster
CEO at The SEO Works
If a pure subscription really is the only feasible model moving forward, this could sound the death knell for X. Most people will not be prepared to pay for something they can get elsewhere for free. Without people and debate, the platform loses its impact. Even with the change of name, the brand is toxic for some advertisers, and with a massively reduced audience it will be even less appealing.
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Lee Petts
Founder at Fifty2M
This was inevitable. Twitter, or X, has reportedly lost a lot of ad revenue since Musk took over, and he needs to get a return on the $44 billion he spent buying the platform, so a subscription model makes sense. We rarely use it as an advertising channel these days, not because we're boycotting it over Musk's attitude to free speech, but because it doesn't work any more. For a start, there's too much content on there, which makes it harder to get noticed than with paid ads on other social media sites. Will it get rid of the bots? Maybe, but user numbers will plummet too because apart from a hard core of mouthy political types that enjoy barking into an echo chamber, I don't imagine a lot of users will hang around if they have to pay.
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Tom Anderson
CEO at Hummingbird Agency
There are a couple of schools of thought here. I think everyone on social media should be verified. You shouldn't be able to have an account without doing so. This would hold people to account for things they say. For example, when Bukayo Saka missed the penalty in the European Championships, the racist abuse he suffered was vile. Perhaps this would be cut out entirely if people knew they could be found and their details passed on. This is essentially Elon trying to recoup some of the billions he has spent. Twitter, now X, has never managed to positively monetise its platform for users and this will almost certainly see a drop in active accounts. Why pay for something you can get for free elsewhere?
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John Lamerton
Small Business Author at Big Ideas... for Small Businesses
16 years of an advertising-supported model resulted in $1.4bn in net losses for Twitter. Musk has well and truly burned his bridges with advertisers, so this is probably his best bet to recoup his $44bn investment. I actually think it'll work, too. Musk has created an "us and them" culture at X, one that could very well lead to "us" being willing to put our hands in our pockets to keep "them" out.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Musk says he wants X to be like a virtual town square, where anyone can say anything and challenge conventional thinking. Well, you don’t have to pay to go into a town square and this will create an elitist membership, predominantly around news and politics. If Musk makes everyone pay, they won’t be paying for long because X will cease to be a going concern shortly after the numbers fall off a cliff.
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Alex Curtis
Founder at The Lead Engine
I remember when everyone wrote off Spotify for having a no-ads paid option, and YouTube has one. So I understood paying for a tick without ads. Making Twitter, or X, paid-only feels like going against the entire ethos of Twitter and what it was created for.
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Jessica Ross
Founder & CEO at Smashtag Social
Twitter, or X, doesn’t offer enough return on investment for brands to consider paying simply to be on there. Any time there is a cost involved you have to be able to justify the payment, and right now the platform is heading the same way as the Dodo. I don’t see how Elon can justify putting X behind a permanent paywall. It’s not going to do the already damaged ex-bird any favours in the long run.
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John McCrea
Blogger at Tales from Absurdia
Musk wants to turn X, formerly Twitter into an 'everything' app. But right now it's a 'nothing' app. Asking for a fee before adding any game-changing features is foolish.
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Katherine Steiner-Dicks
Founder at BuzzVestor Media
Musk’s plan for X is to be a super app. The best way to keep customers engaged is to keep X messaging and posting free and launch new must-have products that keep existing customers tied to the X brand. If Musk says X will become the “most valuable brand on earth” it needs to start launching new products.