X shifts creator payments to focus on engagement rather than ads

As X continues to face backlash from advertisers, including suing a group for boycotting the platform, the company is changing how it pays creators to rely less on ads. Previously, creators would earn a percentage of ad revenue from ads shown in their posts. Now, X has announced that it will pay creators based on engagement with their content from X’s Premium users.

This shift means creators will benefit from posts that drive engagement, potentially changing the type of content that becomes popular on X. Platforms often see creators posting content that sparks discussion, including posts meant to provoke reactions from users.

Interestingly, X’s rival Instagram Threads is already dealing with issues related to this type of engagement, known as “rage bait,” which prioritizes comments over likes or reposts. This system can push creators to post content that incites debate or replies, increasing visibility on users’ feeds. Instagram head Adam Mosseri recently addressed this problem, acknowledging an increase in engagement-bait on Threads.

In contrast, X’s new policy encourages creators to generate replies, regardless of the content. X has not mentioned any plans to regulate engagement bait but emphasizes that creators can earn more money this way.

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According to X, creators can earn more revenue as the number of Premium subscriptions increases.

X has not disclosed if creator payout percentages will change, but it seems likely that they will increase due to more opportunities for engagement now that payments are not ad-dependent. This new system could address creator concerns about reduced revenue as X lost advertisers from boycotts. Premium subscribers see fewer ads, or none at all, on the top Premium+ tier, which went fully ad-free in August.

Currently, creators must be Verified (Premium subscribers), have at least 500 followers (now Premium followers), and have at least 5 million post impressions within the past three months to qualify for monetization. These requirements have led creators to focus on content that attracts replies and attention, shaping the platform’s content and discourse. X has minimal restrictions beyond spam, illegal content, and sweepstakes promotions.

With X rewarding creators based on engagement from subscribers, creators are likely to produce more of this content. This change comes just before the U.S. elections and may result in an uptick of politically charged rage bait, including misinformation like AI deepfakes to garner attention.

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