In our upcoming EcoReporter segment on ‘After a year of Elon Musk, what’s next for X?’, we will explore the challenges and future prospects for X, formerly known as Twitter, under Elon Musk’s leadership.
One of the main challenges for X is declining user engagement. While the company does not release official user figures, several analytics firms have reported a decrease in X’s usage compared to previous years. This decline in user metrics has raised concerns about the platform’s future.
Many high-profile individuals, such as Elton John and Gigi Hadid, have left X in the past year. The introduction of paid blue tick verification, a change implemented by Musk, has also deterred some users from using the platform. Former journalist Madeleine Dunne, now working in digital marketing, stated that X feels like a sinking ship, with the ‘For You’ page dominated by verified users on X Premium.
Another significant challenge for X is its financial sustainability. Musk has attempted to diversify the company’s revenue streams by introducing subscription-based features, such as paid blue tick verification. However, X still heavily relies on advertising revenue, which has been declining since Musk acquired the company. Monthly US ad revenue on the platform has decreased by at least 55% year-over-year each month.
To address these challenges, Musk appointed Linda Yaccarino, previously head of advertising at NBCUniversal, as the CEO of X. However, some experts believe that Yaccarino has not been given the freedom to innovate and has been pressured by Musk to focus on quick revenue fixes, such as the subscription model.
Musk envisions X as more than just a social media company. He aims for X to become an “everything app.” However, the specifics of this vision have not been disclosed yet.