Illustration: Gabriella Turrisi/Axios
Social media is getting pricier for users who want to unlock special features and privileges.
Why it matters: Users who once believed they were contributing their time and creativity are now being asked to pay up by cash-hungry platforms.
Driving the news: Elon Musk on Monday tweeted that beginning April 15, only tweets by verified users will show up in Twitter's default main feed of "For You" recommendations. Verification, formerly a service Twitter offered public figures, is now available only to $8-a-month subscribers.
- The new strategy "is the only realistic way to address advanced AI bot swarms taking over. It is otherwise a hopeless losing battle," Musk argued. "Voting in polls will require verification for same reason."
Between the lines: Musk has tried to shift more of Twitter's business towards charging for subscriptions amid advertising pullback.
- In addition to charging users to be verified, he also began charging companies for access to Twitter's API, or backend interface, something many used to be able to access for free.
Be smart: Other social networks have made changes to their feeds to prioritize paid traffic over organic posts, but Musk's moves are more drastic.
- As The New York Times' Mike Isaac notes, when Facebook transitioned its algorithm to prioritize posts from friends over Pages, brands and news companies were forced to buy ads if they wanted to be seen.
The big picture: Twitter isn't alone in its push for more stable, recurring revenues. Other social networks, having reached a point of maturity and a slowdown in the ad market, are also looking to make more money from subscriptions and licensing.
- Meta launched its version of a paid verification subscription service in the U.S. last week. Snapchat introduced a new consumer subscription last year.
- Snapchat also last week launched its first enterprise software business, licensing its augmented reality software and tools to enterprise companies.
- "[T]his opportunity is major, not just for Snap, but for businesses of all sizes," said Jill Popelka, head of AR enterprise services for Snap Inc. Snap will first focus on licensing out its tech and services to the retail industry before testing other markets.
Yes, but: Musk has announced many new policies and promises from his Twitter account that have fallen by the wayside or remain unfulfilled.
The bottom line: Users may not need all of the new paid perks they're being offered, but tech firms are desperate to sell them.
- Musk admitted to employees this week that Twitter is worth less than half of what it was when he bought it.
- Stocks for Meta and Snap have both lost all of of their pandemic momentum since the ad market began to crater in 2022.
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