X Explores Charging New Users To Sign Up to Boost Revenue
X is reportedly considering a significant shift in its user sign-up process: charging new users $8 to create an account. This move, potentially set to roll out as early as February, is part of X’s strategy to address its financial losses and enhance revenue generation, according to a report by Fortune.
The $8 fee would include one free month of X Premium, the platform’s subscription service that offers features like the verified blue checkmark badge. While this plan could generate immediate income from new sign-ups, it’s also aimed at increasing adoption of X Premium, which has struggled to gain traction since its launch.
X Premium has fallen short of its ambitious goals even with occasional increases in Premium subscribers, with fewer than 2 million users subscribing – far below the 69 million Musk projected for 2025. Despite initial hopes that subscription revenue would offset the platform’s reliance on advertising, ads still account for 90% of X’s income. Efforts to attract more subscribers, such as integrating the AI chatbot “Grok” into Premium, have also underperformed.
The $8 sign-up fee could serve a dual purpose: generating revenue while deterring bot accounts, a challenge X previously addressed with a $1 fee in limited markets. However, this approach carries risks. With X’s user growth already stagnating – hovering at 250 million daily active users since late 2022 – and many users going to competitors like Bluesky for various different reasons, a paywall could deter potential users, further flattening growth. On the other hand, if enough new users committed to a paid sign-up, the platform could see a massive spike in short-term profits.
While X continues to explore ways to stabilize its finances, including discounted Premium subscriptions during the holiday season, its broader challenge remains: convincing users that its paid features offer enough value to justify the cost. Whether this new sign-up fee will help X regain financial footing or alienate potential users even further (a problem that the platform is already facing due to a rapid set of controversial changes) is yet to be seen.
