Evaluating the Transformation of Twitter After Elon Musk’s Acquisition
It has been a year since billionaire Elon Musk took charge of Twitter, implementing significant changes to transform the social media platform. Musk renamed the platform as X and began dismantling core features that defined Twitter, such as its iconic blue bird logo and verification system. He also terminated key executives, engineers, and moderators, which resulted in a loss of advertisers and users.
The metamorphosis of X into an “everything app” envisioned by Musk has faced various challenges, with a decline of 30% in active users actively tweeting. The platform’s revenue and advertising also experienced significant reductions. According to Bloomberg News reporter Aisha Counts, advertising dropped by 60% in September, affecting the service’s financial viability.
The Loss of Twitter’s Role as a Hub for News
Twitter, previously regarded as an imperfect yet valuable source to stay updated on current events, has lost its significance due to the changes introduced by Musk. Jasmine Enberg, an analyst with Insider Intelligence, contends that Musk has failed to make any meaningful improvements to the platform. Consequently, users and advertisers have abandoned X, which has significantly diminished its status as a central hub for news.
Musk’s unique experience as a popular Twitter user has shaped his perspective on the platform, leading him to make changes based on his personal impressions. Despite his intention to transform X into an all-encompassing app incorporating features like payments and shopping, the journey towards achieving this vision remains long and uncertain.
The Impact of Blue Checkmarks and Misinformation
The credibility of blue checkmarks has been eroded, with these symbols now indicating payment for a monthly subscription service instead of verifying the identity behind an account. This subscription service allows users to boost their posts over others, resulting in paid accounts spreading misinformation amplified by algorithms. Concerns have arisen regarding the dissemination of false information, particularly during events such as the Israel-Hamas war.
The European Commission has formally requested information from X regarding its handling of hate speech, misinformation, and violent content related to the war. Notable figures like Ian Bremmer have expressed alarm over the level of disinformation being algorithmically promoted on the platform.
Financial Challenges for X
Twitter faced financial difficulties even before Musk’s acquisition, and its situation has become more precarious. Musk took the company private, making its financial state less transparent. Musk disclosed that the company experienced a 50% drop in advertising revenue, contributing to negative cash flow and significant debt. The hiring of Linda Yaccarino, a former NBC executive, aimed to attract top brands back to X but yielded slow results.
Insider Intelligence estimates a 54% decline in advertising revenue for X in 2023 compared to 2022, indicating a significant setback. Additionally, research shows a decrease in the platform’s usage, with global web traffic to Twitter.com down 14% year-over-year. These circumstances have further contributed to the wavering cultural relevance of Twitter.
In conclusion, Elon Musk’s ownership and transformation of Twitter into X have encountered numerous challenges, resulting in a decline in user engagement, advertising revenue, and overall brand appeal. The future of X as an “everything app” remains uncertain as it struggles to regain its status as a central hub for news and overcome financial hurdles.
