X expands ad-free experience for Premium+ users amid revenue shift

As Elon Musk challenges the wider advertising industry, X (formerly Twitter) is offering users the option to bypass ads entirely through its most expensive subscription, X Premium+. While ad-free browsing was always a part of the Premium+ package, it initially didn’t cover all ad placements within the app.

Previously, Premium+ subscribers were only free from ads in the ‘For You’ and ‘Following’ timelines, but still encountered them in other areas like search results and post replies. However, X has now revised the Premium+ terms to offer an almost completely ad-free experience across most sections of the app, including post replies and profiles. Although some sponsored content might still appear occasionally, the majority of ads will be removed for these top-tier subscribers.

This move aligns with Musk’s disdain for advertisements and his broader strategy to shift X's revenue model away from ad dependence. Musk’s goal is to generate half of X’s revenue from subscriptions, reducing the platform’s reliance on ads and the need to cater to advertisers’ content moderation demands, which he views as censorship.

However, this shift has sparked controversy. X recently filed a lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA), accusing them of steering advertisers away from the platform to influence its moderation policies. As a result of Musk’s more relaxed approach to content moderation, X has seen a significant drop in ad revenue, which has intensified the push for more users to subscribe to its paid tiers.

Despite a stagnant daily active user count, time spent on X is increasing, suggesting that its core user base is becoming more engaged. This could potentially lead to more subscriptions. However, an increase in Premium+ subscriptions could negatively impact X’s top creators, as the ad revenue share program relies on ads displayed in reply streams. More users opting for the ad-free Premium+ tier would reduce the audience for these ads, thereby cutting the revenue for creators.

Interestingly, to benefit from the creator revenue share program, users need to subscribe to the second-highest tier, X Premium, while X Articles are only accessible through Premium+. This means that top users are being asked to pay for a program that could ultimately decrease earnings for other top users—an unusual proposition, but one that mirrors the success of YouTube Premium, which also thrives on offering an ad-free experience.