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Elon Musk’s X Increases Premium-Plus Subscription Pricing to Boost Creator Payments

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Elon Musk’s social media platform X, formerly known as Twitter, has increased the cost of its premium-plus subscription tier in several markets starting December 21, aiming to enhance payouts for content creators. The price for this top-tier plan has risen from $16 to $22 per month in the United States, as announced in a recent blog post. Meanwhile, the pricing for the basic tier and premium subscriptions remains unchanged at $3 and $8, respectively.

In October, X revised its revenue-sharing practices to ensure that subscription fees more effectively benefit creators. The updated model emphasizes content quality and user engagement, rather than relying primarily on ad views, to determine creator compensation.

The new pricing applies only to new subscribers, while existing members will continue to pay the previous rate until January 20. Premium-plus subscribers gain benefits such as ad-free browsing, enhanced access to the Grok AI chatbot, and Radar—a feature offering real-time analytics on trending topics through keyword tracking.

This move underscores Musk’s broader strategy to diversify X’s revenue streams. The platform, historically dependent on advertising revenue, is now focusing on subscriptions as a key growth driver. Since acquiring Twitter and rebranding it to X, Musk has been working to reshape the platform’s business model to better align with the demands of both creators and subscribers.

 

Instagram to Dominate Meta’s U.S. Ad Revenue by 2025, Report Predicts

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Instagram is poised to generate over 50% of Meta Platforms’ U.S. advertising revenue in 2025, driven by its improved monetization strategies, according to research firm Emarketer.

Why It Matters

Instagram’s short-form video feature, Reels, has emerged as a key competitor to ByteDance’s TikTok and YouTube Shorts. As users increasingly engage with short videos, advertisers are shifting their focus to this format, providing Meta with an opportunity to boost revenue through more targeted ad placements.

The potential implementation of a TikTok ban in the U.S. could further accelerate Instagram’s growth. If enacted, platforms like Reels and YouTube Shorts are expected to attract advertising budgets previously allocated to TikTok, opening new revenue streams for Meta.

Key Insights

  • Video-First Platform: Jasmine Enberg, principal analyst at Emarketer, highlights that Instagram has transformed into a video-first platform. Users now dedicate nearly two-thirds of their time on Instagram to watching videos.
  • Reallocated Ad Budgets: Enberg also predicts that Instagram could capture over 20% of TikTok’s U.S. advertising dollars if the ban takes effect in 2025.

By the Numbers

  • In 2024, Instagram’s ad revenue was primarily driven by its Feed and Stories features, which accounted for 53.7% and 24.6% of its revenue, respectively.
  • By 2025, revenue generated by Reels, Explore, and Threads is expected to rise, collectively contributing 9.6% of Instagram’s total ad revenue.

Context

The shift toward video content aligns with broader trends in digital media, where short-form videos have proven highly effective in capturing audience attention. Reels’ growing popularity offers Instagram a competitive edge, particularly as regulatory uncertainties loom over TikTok.