Elon Musk’s social media platform, X has seen a significant drop in revenue since Musk took over. In the first six months of 2023, X’s revenue fell by nearly 40 percent from the same period the prior year, bringing in $1.48 billion. Furthermore, X reported a loss of $456 million in the first quarter of 2023.
The majority of this drop in revenue can be attributed to X’s advertiser woes. Prior to Musk’s takeover, advertising accounted for about 90 percent of the company’s revenue. However, under Musk, advertisers fled due to platform changes and various controversies involving its owner, leading to a decline in ad revenue.
In response to the revenue loss, X is looking to launch a payment services system on its social media platform. The company has submitted documents to 11 states seeking to obtain money transmitter licenses. The proposed service, called X Payments, will allow users to pay other users, buy products and services, and store money via their X account.
Despite the introduction of the X Premium subscription plan and a subscription service for creators, neither service has been able to close the revenue gap left by the advertiser exodus. However, X plans to utilize the X Payments service mainly to achieve increased participation and engagement on the social media platform.
Read more: mashable.com