Elon Musk's X shifts creator payment model from ads to engagement

New Delhi: Elon Musk's social media platform X has announced a change in how content creators will earn revenue. 

Starting November 8, 2024, X will no longer compensate creators based on ad views but will instead reward them for engagement from X Premium users. 

This move comes as part of X's broader strategy to pivot away from its reliance on advertising revenue, which has seen a decline of nearly 40% due to an advertiser exodus. 

The new model aims to foster more genuine interaction and content that resonates with the platform's paying subscribers, those who subscribe to X's Premium service starting at $8 per month.

Under the previous system, creators earned revenue based on how many ads were displayed to Premium users in the replies to their posts. However, with the new engagement-based model, the focus shifts towards the quality and interaction rate of content, potentially reducing the prevalence of clickbait and encouraging content that fosters meaningful engagement.

For creators, it means adapting content strategies to not only attract views but to engage the premium audience actively. For X, it's a gamble to boost premium subscriptions at a time when the platform seeks to diversify its revenue streams beyond advertising.