X to Fight Bot Sign-Ups with Annual Fee for All New Accounts
Elon Musk has confirmed that X (formerly Twitter) will expand its annual fee requirement for new accounts. This move aims to combat the "relentless onslaught of bots" plaguing the platform. The decision comes after an update to X's back-end code revealed plans to charge all new users a "small annual fee" before they can post, like, bookmark, or reply.
While users will still be able to create an account and browse for free, interaction requires a paid subscription. Musk further stated that new accounts can interact for free after three months.
Testing the Waters: The $1 Account Launch Fee
X initially launched a $1 account launch fee program in New Zealand and the Philippines last October. The idea was to deter bot farms by making it financially prohibitive to create thousands of accounts. Additionally, X considers "payment verification" a way to confirm real human ownership of accounts.
Unveiling the True Scope of the Bot Problem
Currently, it's unclear whether the fee will be global or implemented in specific regions first. Regardless, it indicates a potential shift towards a pay-to-use model for X, an idea Musk has previously floated.
The sheer number of bots on X isn't surprising. Despite a daily influx of 1.7 million new sign-ups, X's active user base hasn't shown significant growth. This discrepancy suggests a massive number of inactive bot accounts.
With 1.7 million daily sign-ups, X should see a rise of approximately 51 million monthly active users. However, X's daily active user count remains stagnant at 250 million, indicating no growth since November 2022 despite massive account creation.
A Fee for All? Potential Concerns and Impact
While requiring payment can deter bots, it might also discourage genuine users, especially considering the lack of data on how the initial test programme impacted new user sign-ups in New Zealand and the Philippines.
Furthermore, requiring payment information during signup might raise privacy concerns and deter users from joining X.
This policy suggests that X's bot problem is potentially more severe than acknowledged, aligning with Musk's claims prior to acquiring the app. In 2022, Musk challenged the platform's value, arguing that the reported 5% bot rate was significantly underestimated. His analysis placed the bot percentage closer to 20%.
Whether X has 20% fewer genuine users than reported remains unclear. However, taking such a drastic step suggests a bot problem exceeding the reported 5%.
A Bleak Outlook for X's Long-Term Viability?
This fee-based approach raises concerns about X's future. The platform already faces a 50% decline in ad revenue, and its subscription service hasn't achieved significant traction.
If bots continue to be a major issue, it could further deter ad partners. X lacks other revenue streams, and unless users find its Grok chatbot compelling enough to pay, its future appears uncertain.
