Elon Musk has announced that due to a large number of requests, it will take some time to shift ‘X’ into the ad revenue sharing model
The platform, now rebranded as ‘X,’ will be sharing ad revenue with content creators, but this process will require some additional time to handle the high volume of requests. Furthermore, only premium (Blue) customers will be eligible to participate in the ad revenue sharing program, and for non-premium subscribers, their ad revenue will be retained by the company.
To be eligible for your ad revenue share, you must be an X Premium (Blue) subscriber.
The ad money will otherwise be kept by X if you are not an X Premium (Blue) subscriber.
This program is open to everyone.
— Elon Musk (@elonmusk) August 5, 2023
Content creators’ interest in ad revenue sharing exceeds our expectations, so it will take a few more days to process. Major payments are coming soon!” tweeted Elon Musk on Saturday.
This news isn’t surprising to many, as since Elon Musk took over the social media platform, there have been allegations from individuals closely associated with the company of intentionally violating contracts and evading legal responsibilities.
Regarding the ad revenue withdrawal from ‘X,’ it’s also a consequence of the management turmoil following Elon Musk’s takeover. Last month, Musk openly stated that the company’s cash flow was negative due to declining ad revenue and heavy debt. He mentioned, “We need to reach positive cash flow before indulging in other luxuries.”
To cut costs, ‘X’ has taken several measures, including laying off thousands of employees. Elon Musk revealed that by 2023, the company has reduced its non-essential expenses from an estimated $4.5 billion to $1.5 billion.
One of the main reasons for the agreement on content moderation is that some advertisers are leaving the platform due to concerns about their ads being displayed alongside inappropriate content.