A year ago, after acquiring Twitter, Elon Musk made an unconventional entrance at its headquarters, humorously quipping, “Let that sink in,” before initiating significant staff layoffs. This marked the beginning of a turbulent 12-month period, including the company’s renaming to “X.”
X has demonstrated resilience in the face of competitors, but it faces challenges ahead. User engagement has declined, and advertisers are cautious.
Precise user numbers for X are undisclosed, but analytics firms report a decline in usage. Notably, many notable figures, including Elton John and Gigi Hadid, have left the platform. The introduction of paid blue tick verification has also eroded trust.
Subscriptions vs. Advertising:
X’s primary challenge, like Twitter’s, is revenue generation. Elon Musk has reduced costs through layoffs but introduced subscription-based revenue streams, where users pay for premium features. However, X remains heavily reliant on advertising, which has been declining.
Hopes for a Rebound as an “Everything App”:
Linda Yaccarino’s appointment as X CEO was seen as a positive development, distancing Elon Musk from the platform. Mr. Musk envisions X as more than a social media company but an “everything app.” It aims to offer unlimited interactivity and global marketplaces for various services and opportunities.
Diversification and Future Plans:
Elon Musk has diversified X’s offerings by streaming video games and launching audio and video call services. X is set to compete with apps like Twitch and venture into the banking sector.
X faces ongoing challenges in content moderation, as reports show it continues to host hate speech and extremist content. Critics argue that self-regulation is insufficient.
In conclusion, X confronts numerous challenges, but Elon Musk remains ambitious about its potential as a collective consciousness platform.