The platform formerly known as Twitter, now X, owned by Elon Musk, has just rolled out a significant update to its creator monetization program. In a surprising move, X has decided to discontinue its ad revenue-sharing program, which previously allowed creators to earn a portion of the ad revenue generated from their content. Instead, the platform is shifting to a new model that pays creators based on engagement from X Premium users.

In an official post from October 9, X announced, “Ads in replies will no longer impact your payout. Instead, you’ll be paid based on engagement with your content from Premium users. So, when your followers subscribe to X Premium and engage with your content, they support you directly.” The post also highlighted that payouts would grow as the Premium offering expands, with up to 25% of premium subscription payments now going directly to creators. Essentially, users will now be directly supporting their favorite creators by interacting with their content.

This shift reflects X’s intention to move away from the reliance on ads and instead focus on a more direct revenue-sharing model with creators. By encouraging users to subscribe to X Premium, the platform hopes to provide creators with a more predictable and potentially lucrative income stream. X emphasized that the interactions driving payouts will now come from genuine engagements with Premium users.

However, the overhaul has stirred mixed reactions within the creator community. For many creators, especially smaller ones, the previous ad revenue-sharing model was a vital source of income that motivated them to consistently produce high-quality content. With the shift to Premium-based engagement, smaller creators may face additional challenges in monetizing their content, as they may not have a large enough following willing to pay for Premium subscriptions.

Social media has seen a surge of backlash from creators who fear losing a significant revenue stream, with many arguing that this new system favors larger influencers and might create an even bigger gap between top-tier creators and those just starting out. The absence of ad revenue sharing could push smaller creators to find alternative income sources, such as brand collaborations, merchandise sales, or external sponsorships.

Despite the controversy, X appears confident that this shift will incentivize more users to subscribe to Premium, ultimately benefiting both creators and the platform. While some creators may struggle in the short term, X's strategy is clearly aimed at driving more Premium sign-ups and offering a more sustainable income model for content creators in the long run.

X Discontinues Ad Revenue Program for Creators