X, formerly Twitter, to launch two new subscription tiers

X, the social media service formerly known as Twitter, will launch two new tiers of subscriptions for users, its owner Elon Musk said on Friday.

One tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads,” Musk said.

This week, X announced it will begin a test that charges users $1 per year in New Zealand and the Philippines in order to “post & interact with other posts.” X said it is part of a program designed to fight spam and bot activity. Those who opt out will only be able to read posts.

It’s unclear if the $1 annual subscription is one of the two new subscription tiers that Musk is referencing.

The social media company already has a $8 per month subscription service called X Premium. Users who signed up to this can get the blue checkmark on their account as well as other features, such as the ability to edit a post.

Since taking over Twitter in October 2022 and rebranding to X, Musk has made sweeping changes, including making cuts to trust and safety teams and removing the blue checkmark from non-paying accounts. The blue checkmark helped users identify authentic accounts belonging to public figures. Musk has also reinstated previously banned accounts on the platform.

Those changes have scared off advertisers. In July, Musk said X’s cash flow remains negative because of a nearly 50% drop in advertising revenue coupled with “heavy debt.”

New subscriptions could be a bid to improve the company’s finances and open new revenue streams.

X is facing challenges from less mature players such as Meta’s Threads and Bluesky.