Elon Musk has proposed a paywall for the social media platform X, formerly known as Twitter. However, industry experts are expressing concerns over the viability of such a model, Business Insider reported.
Musk revealed his plans during a conversation with Israel’s Prime Minister Benjamin Netanyahu. He stated that the introduction of a “small monthly payment” for using X is the most effective solution he could think of to combat “vast armies of bots.”
Musk further shared that the company is considering a “lower-tier pricing” model, though details about the proposed payments’ nature and cost remain unclear.
See Also: Tesla CEO Elon Musk Showcases Cybertruck As Innovative Departure In Auto Design
But experts are questioning Musk’s motives and the potential impact of these charges.
Social media expert Matt Navarra also expressed his doubts, stating that convincing users to pay even a small fee for X could be a challenging task. He further added that implementing a paywall might hinder the platform’s growth, especially among users in developing countries.
“I think it’s a risky strategy that may only speed up the deterioration of a platform in chaos,” he said.
Charlie Beckett, a professor at the London School of Economics, said, “It doesn’t make much financial sense because any serious charge that could raise significant revenue would end up driving people onto alternative networks.”
Musk, since acquiring the platform, has been trying to monetize it mainly through the subscription service, Twitter Blue. However, it has only attracted sign-ups from less than 1% of X’s user base.
Read Next: Looking for a way to boost your returns? Benzinga's Real Estate Offering Screener has the latest private market investments with offerings available for both accredited and non-accredited investors.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4 Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.