X, formerly known as Twitter, is making a change to how some creators earn money on the platform. Starting November 8, 2024, creators will be paid based on engagement from Premium users instead of ad revenue.
A new payment model for creators
Before, creators were compensated based on how many verified users saw ads in the replies to their posts. Now, X is moving towards rewarding creators for the engagement their content receives from X Premium users. As X explained, “The more Premium subscriptions overall, the more revenue you can earn.”
This new system is part of X’s push to increase Premium subscriptions and reduce dependence on ad revenue, which has been declining due to advertiser boycotts and other issues. With ad revenue falling by almost 40%, the company hopes that this engagement-based payment model will encourage more users to subscribe to X Premium.
Concerns on this new system
Some are concerned about the type of content this new system may encourage. Similar systems on other platforms have led to the rise of “rage bait” content designed to provoke strong reactions and drive engagement. As more creators focus on generating replies and discussions, it’s likely that controversial and provocative posts will become more common on X.
This shift may also affect the overall culture of X. With monetization no longer tied to ads; creators could feel freer to post content that was previously restricted, such as violent or explicit material. Previously, certain types of content, like pornography or hate speech, were either not monetized or had limited monetization options.
While X believes this move will result in higher payouts for creators, only time will tell if this new approach will bring the platform closer to its goals of increasing revenue and user engagement.
