Elon Musk’s social media venture, X, is setting its sights on the vast landscape of video streaming by introducing a smart TV application specifically designed to challenge YouTube’s dominance. This move is part of a broader strategy to transform X into a premier destination for video content, signaling a significant pivot from its origins as a platform primarily known for short, text-based messages.
According to insider information from Fortune, the app is gearing up for release on Amazon and Samsung smart TVs, possibly hitting screens as soon as next week. It’s said to have a user-friendly interface, much like YouTube’s, hinting at the fierce competition to come.
Musk’s Strategy to Revolutionize Video Content
This move is a big part of Musk’s plan to get people hooked on watching longer videos on bigger screens, a concept he initially teased in July. The big goal is to make X more appealing to both video creators and advertisers, making it a more competitive player in the online video sphere. A source, who wanted to stay anonymous due to unauthorized communication with the press, highlighted Musk’s determination to take on YouTube. They also mentioned Musk’s interest in competing with other digital services like Twitch, Signal, and Reddit, indicating a wide-ranging vision for X’s expansion.
The introduction of the X TV app is particularly noteworthy especially considering that the platform used to be all about short text messages when it was known as Twitter. Despite this legacy, X declared itself a “video-first platform” in January, emphasizing a new TikTok-like video feature that supports immersive, full-screen scrolling. This isn’t X’s first foray into TV, though. Back in 2016, they scored a $10 million deal to stream NFL games, which led to them launching TV apps for different platforms like Amazon Fire TV, Apple TV, and Xbox One.
Musk’s vision for X appears to center on attracting media celebrities, online influencers, and gaming content to the platform. This strategy is evidenced by X’s recent partnership with former CNN anchor Don Lemon for a new show and the publication of long-form videos by former Fox news pundit Tucker Carlson, including a notable interview with Russian President Vladimir Putin. Musk has been proactive in encouraging content creators to migrate their video content to X, promising the potential for increased ad revenue. This proposition was tested by YouTube star Mr. Beast, who shared his financial success with a full-length video on X, although he expressed skepticism about the sustainability of such earnings, attributing them to the heightened advertiser interest and possible platform promotion.
What Challenges Does X Face in Its Venture into Smart TV Apps?
Competing with YouTube presents a formidable challenge due to several factors:
- YouTube’s Dominant Presence: YouTube is part of Google’s vast digital ecosystem, making it a tough competitor, especially given its entrenched presence in the U.S. television market.
- Viewer Preferences: Data from the Information and Nielsen underscores YouTube’s supremacy, with significant portions of its U.S. viewership watching content on TV screens.
- Streaming Service Ranking: YouTube ranks as the leading streaming service in terms of TV screen usage, ahead of other services like Netflix.
However, X’s journey under Musk’s ownership has not been without its hurdles, including a notable drop in platform usage and the loss of key advertisers following Musk’s endorsement of an antisemitic conspiracy theory and subsequent tensions with the advertising community. These issues have contributed to a significant devaluation of X under Musk’s stewardship, with shareholder Fidelity reporting a 71.5% decrease in the platform’s worth since its acquisition. Amidst these challenges, X’s push into the smart TV app market is a bold step towards redefining its role in the digital content ecosystem and capturing a share of the lucrative streaming video market.
Related News:
Featured Image courtesy of SOPA Images/LightRocket via Getty Images