X, the social media platform owned by Elon Musk, has announced a major change to its Creator Revenue Sharing Program. As of November 8, creators will no longer be paid based on ads served in their posts but instead on engagement from X Premium users.
Under the previous system, creators on X were compensated based on the number of ads shown to X Premium users in replies to their content. Now, instead of earning money from ads, creators will be paid according to how many X Premium users interact with their posts, such as replying, liking, or reposting.
According to X, this new engagement-based model is intended to increase payouts for creators. The platform highlighted that the growth of X Premium subscriptions will now directly affect creator earnings, stating, “The more Premium subscriptions overall, the more revenue you earn.” This shift also appears to be part of X’s strategy to grow its subscriber base and lessen its reliance on traditional advertising, which has seen a sharp decline. The company recently reported a 40 percent drop in ad revenue, attributed to advertisers leaving the platform, even resulting in legal action against a group boycotting the platform.
Premium Users Will Drive Creator Earnings
X Premium’s tiered service includes different levels that affect ad exposure and thus creator earnings:
- Premium: This basic tier costs $8 per month and includes some ad exposure for users, which had previously contributed to creator payouts.
- Premium+: This higher-priced tier, introduced in August, offers a fully ad-free experience for users. Under this system, creators cannot rely on ads shown to Premium+ users for revenue.
This changes significantly impacted how creators could generate income under the old ad-revenue model. The new system, which bases payouts solely on engagement, aims to resolve creator concerns about their revenue share, especially as more users switch to Premium and Premium+ services, which reduce or eliminate ads altogether.
However, this change may also influence the type of content posted on X. Platforms that reward engagement often see a rise in content aimed at provoking reactions or sparking debates. Already, some creators on X post content designed to stir outrage or controversy to boost interaction. Instagram’s Threads platform is facing similar issues, where engagement-based rewards have led to an increase in posts that are meant to enrage or divide users. Adam Mosseri, head of Instagram, recently acknowledged the rise of such “rage bait” content on Threads, noting that the platform is working to address it.
X, on the other hand, has not indicated that it plans to manage or limit engagement-bait posts under this new system. While creators are still subject to some restrictions, such as rules against spam and illegal content, many are concerned that the engagement-based model could lead to a rise in controversial and provocative content, especially with U.S. elections approaching. Although some types of content, like adult material or hate speech, “may” face restricted monetization, X’s guidelines on this remain vague, raising questions about the platform’s future content environment.
How Creators Qualify for Monetization
Currently, to qualify for X’s monetization program, users must be subscribed to X Premium, have at least 500 followers, and achieve 5 million impressions on their posts within the last three months. As engagement becomes the primary metric for earnings, creators are likely to tailor their content toward generating more replies, likes, and reposts from X Premium subscribers.
Featured Image courtesy of NICOLAS TUCAT/AFP via Getty Images
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