Is it worthwhile to pay for social media?

Yasir AliMay 13, 2024

2 12 4 minutes read

Is it worthwhile to pay for social media?

It’s time for me to admit it: I have signed up for Elon Musk’s social media site X, which was once known as Twitter. “Why are you giving money to the world’s richest man?” My friend yelled.

She was right, of course, but there were two reasons why I did it. First of all, I subscribed because it provides some form of authentication, and I was aware that there were a few false accounts of myself online. Secondly, this was the easiest method for me to obtain Grok, X’s AI chatbot, which I wanted access to.

On X, users’ reviews are so inconsistent that you can choose to conceal the “blue mark” that displays next to your name after you sign up.

Some well-established users have a strong dislike for “buying your way in,” or increasing your profile and exposure through payment as opposed to doing so naturally through the creation of quality material.

I didn’t anticipate that my own experience with the platform would alter all that much. However, there are advancements.

The ability to create and edit longer entries is obviously beneficial, and I’ve noticed that there are less advertisements now. On the other side, because I’m now paying with real money for the service, the spam and bots that ruin it irritate me much more.

Is spending time on social media worth it, or is it a waste of time?

According to Johnny Ryan, an older marketing executive who now serves as an experienced associate of an Irish Council for Freedom of Expression, advertisers are somewhat more amenable to paymaster approval than subscribers.

“The advertiser generally doesn’t care about the content,” he asserts. “Scandals may arise occasionally, but overall, they tend not to be political.”

The phrase “if you’re not paying for the product, you ARE the product” implies that when you use a service for free, the provider may utilize the data you generate to profit by selling it to advertisers who want to target you.

It’s a well-proven and profitable company strategy. A few years ago, the bold tagline “Data is the new oil!” was something I heard a lot in the computer business. However, it’s possible that the oil well is depleting, since digital companies are considering subscriptions as a potential substitute.

In Europe, Meta launched an ad-free Facebook and Instagram membership model half a year ago. For mobile devices, the monthly charge is €13 ($14; £11), which is approximately normal for an internet service fee. The internet behemoth refused to provide me with the current sign-up total.

Now, this was purportedly done to comply with recent consumer choice regulations in the EU. Unfortunately, it backfired: the EU Commission claims that Meta may not have made a good enough judgement when it came to the binary choice of either turning over money or data, and Meta is now the subject of an inquiry.

Snap Plus, which debuted in June 2022 and has an ad-free alternative that is currently rolling out, quickly reached one million users. Additionally, 100 million people used YouTube’s premium subscription in 2023, which provides ad-free viewing.

“I desire the convenience of simply enjoying content without the concern of when advertisements might interrupt,” states James Hacking, a veteran YouTube user and founder of the media consultancy firm Socially Powerful.

Conversely, Amazon Prime added advertisements to its streaming platform and now costs customers (who are already members) an additional premium to remove them. Netflix, on the opposite hand, released a more affordable subscription plan that includes commercials.

According to Johnny Ryan, this hybrid paradigm embodies the worst aspects of both societies. He calls it a “weird thing” to be paying a charge in addition to viewing advertisements.

Subscriptions represent a shift from an expanding market to one that is saturated, says Azeem Azhar, founder of the technology-oriented newsletter Exponential View. When new customer acquisition is no longer feasible, finding methods to boost your company’s revenue becomes essential.

“A segment of internet users is willing to pay for services, similar to a segment of airline passengers who are willing to pay for priority boarding.”

He does, however, provide a warning, especially with regard to social networks.

“If everyone has to pay, usage will decline, leading to less engagement and a drop in desirability,” he asserts. “A balance is needed between having free users for content creation and re-sharing, and those willing to pay for an enhanced experience.”

Maybe X already knew this; after only a few days of introducing its subscription service, all users with a million or more followers received free premium account status, and it recently expanded that to include accounts with 2,500 or more premium followers.

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This occurs at a time when several news organisations have effectively made the transition to subscription finance. Many of them are curled up nicely behind paywalls. In Sweden, where 33% of people paid for internet news last year, according to the Reuters Institute, it has been especially effective.

About 100,000 people are subscribers to Mr. Azhar’s account on Substack, a website that links producers and audiences. Publications are free, while 10% of paid memberships are taken by Substack. Additionally, there is a 3% transaction charge for the Stripe payment system.

The several magazines hosted by Substack reportedly have over three million subscribers. Advertisements are prohibited for those who create stacks.

“The key to a successful account lies in consistency; you must keep showing up. It’s crucial to establish a habit in the minds of your readers,” states Hamish McKenzie, the creator of SubStack.

“They will form a bond with you, and then it’s your responsibility to maintain their trust, which entails valuing their attention—the antithesis of the advertising game. You must be sincere and not squander their attention by overwhelming them with an array of distractions that detract from their day.”

According to Mr. McKenzie, there will eventually be a “grand rivalry” between individual creator models like Substack and social networks that charge a single membership for all of the material on them. “The world is much better when the audience is considered the customer, not the product,” he stated.