Elon Musk’s ambitious vision to steer X, the platform formerly known as Twitter, toward a revenue model less reliant on advertising by ramping up paid subscriptions is yet to see significant success. An analysis by Appfigures sheds light on the financial trajectory of X’s Premium subscription service, revealing that since its inception in 2021, the app has garnered approximately $200 million in in-app purchase revenue across iOS and Android. However, this figure may be a conservative estimate because it only accounts for mobile app purchases and does not include purchases made via the mobile or desktop web, where X offers additional discounts.
After addressing app store commission fees, X is estimated to have netted at least $140 million. This sum likely increases because Apple and Google reduce their commission rates from 30% to 15% starting in the second year, although Appfigures lacks precise data on which subscriptions qualify for the reduced rates.
X Premium, which underwent a relaunch in December 2022 as part of Musk’s strategy to emphasize non-advertising income streams, has seen a gradual increase in its numbers. Data shows that within the first three months post-relaunch, the service only amassed $11 million in mobile app subscriptions. Since then, two additional subscription tiers, Basic and Premium+, have been introduced.
Nevertheless, accurately determining the number of X users subscribed to these tiers remains elusive. Still, some hypotheses can be made. X’s subscription services—Basic, Premium, and Premium Plus—offer different levels of benefits, such as advanced features, blue verification checkmarks, and reduced ad exposure. The Premium tier remains the most favored in-app purchase, priced at $11 monthly on mobile devices.
Appfigures reports that X amassed $14.7 million in in-app purchases from mobile devices as of September 2024. If this revenue predominantly stemmed from X Premium users, it would equate to around 1.3 million subscribers. Alternatively, should the lower $4/month Basic tier account for all subscriptions, it could imply a user base of nearly 3.7 million.
Assuming a division with 70% of users opting for Premium, 20% for Premium Plus, and 10% for Basic, X likely gained about 940,000 Premium users, 134,000 Premium Plus users, and 368,000 Basic users in September alone, culminating in around 1.4 million paid users.
A quarterly look suggests an upward trajectory, with a 30% boost in in-app purchase revenue from Q2 to Q3, following a previously steady period. Moreover, in-app purchases extend beyond X Premium, including influential creators’ subscriptions. For instance, Elon Musk himself has over 200 million followers, and should the same percentage of subscribers continue as before, he would boast around 50,000 paying subscribers. This could rack up $200,000 per month in gross revenue from subscription fees alone.
Another high-profile user, @stevewilldoit, follows those who subscribe to him and maintains a solid subscriber base, contributing to his gross monthly earnings of approximately $39,000, prior to X’s deductions.
X is also incentivizing creators by changing its payment model from an ad revenue-based approach to rewarding engagement from Premium subscribers. This strategy may open financial opportunities for creators, though it also risks encouraging content designed to stir reactions and engagement.
Despite these initiatives, subscriptions presently represent a minor portion of X’s overall revenue stream. In the first half of 2024, X generated $1.48 billion in total revenue, as reported earlier. Attempts to bring back advertisers, by securing agreements with formerly estranged partners like Unilever, continue as X navigates its future in the fast-evolving digital landscape.
