Charging new subscriptions can be an effort to improve a company’s finances and open up new revenue streams.On October 20, billionaire Elon Musk said that social networking platform X, formerly Twitter, will launch two new subscription packages for users.

X’s boss said a package would be cheaper with full features but without blocking ads. Otherwise, a package will be more expensive and has no ads

This week, X announced it would begin testing charging users $1/year in New Zealand and the Philippines to use basic features like posting and interacting with other posts. X said this is part of a program to combat spam activity. People who don’t pay to use the feature will only be able to read the articles.

It is unclear whether the $1/year subscription package is part of one of the two new subscription packages Musk mentioned.

Social media company X already has an $8 per month subscription service called X Premium. Users who sign up for this feature can receive a green check mark on their account as well as the ability to edit posts.

Since taking over Twitter in October 2022 and changing its name to X, billionaire Elon Musk has made many sweeping changes, including removing green ticks from non-paying accounts. This mark helps users identify the account as belonging to a public figure. He also reinstated previously banned accounts on the platform.

The above changes have made advertisers worried. In July, Musk said X’s cash flow remained negative due to a nearly 50% drop in advertising revenue, along with “heavy debt.”

Charging new subscriptions can be an effort to improve a company’s finances and open up new revenue streams.

X is now facing challenges from new platforms like Meta and Bluesky’s Threads.