Elon Musk’s X is transforming into a “video-first platform”
About the fact that 2024 will be a “transformational” and video-oriented year for the social network, the company stated in her blog January 9. Fortune believes that in this way X is trying to prevent the outflow of advertisers. And according to Fidelity, one of X’s investors, due to some of Musk’s decisions and statements, the social network is not only losing advertisers: the value of the business has fallen by more than 70% compared to last year’s company price of $44 billion.
As evidence of its transformation, X touts a new Immersive Video feature that looks a lot like TikTok’s full-screen, endless scrolling, with a daily audience of more than 100 million people. More than half of them belong to Generation Z, “X’s fastest growing audience.” The claim that “X is now a video-centric platform” is backed up by statistics: people watch video in 8 out of 10 sessions. But Fortune’s anonymous source at X offered a skeptical comment on the social network’s statement: “I think it’s too early to call us a video-centric platform.”
Perhaps Elon Musk really decided to bet on attracting video content creators to X. The company says it will share advertising revenue with them. During an impromptu live stream last week using an anonymous X account, Musk spent three hours playing the video game Diablo IV online and discussing plans to make X a live streaming hub.
On the advertising front, X writes on its blog that social media advertising has become “more relevant and effective” and has led to a 22% increase in total ad interactions. However, users complain that many advertisements promote fake products.
In addition to video development, X plans to focus on improving the user and advertising experience with artificial intelligence, launch peer-to-peer payments, and increase the relevance of the messages people see in the feed.