X has decided to revamp its payment policy for creators, reducing its reliance on ads. Previously, creators received a share of ad revenue from ads displayed in their posts. However, the company has now shifted its approach, opting to compensate creators based on the interaction their content receives from X's Premium users. This change comes as the company faces increasing tension with advertisers, including legal action against a group that boycotted the platform.
In simpler terms, this means that creators will receive payment for posts that generate engagement. X has not clarified if and how creator payout percentages would change, but it appears to imply that they may increase due to the greater opportunities for engagement, now that payments aren't reliant on ads.
The new system could address creator concerns about their reduced revenue share as X lost advertisers due to boycotts and other factors. Additionally, Premium subscribers experience reduced ad loads or even no ads on the top Premium+ tier.
Disadvantages of this policy:
This change could influence the type of content that gains popularity on X. Creators might start posting content specifically to provoke discussion, including posts designed to provoke users into responding or commenting.
Ironically, X's rival Instagram Threads is already dealing with issues related to this latter type of engagement, sometimes referred to as "rage bait," which prioritises comments over more passive responses like likes or reposts. The system might encourage creators to share content that incites debate or replies, which could push their posts into more people's algorithmic feeds.
In its announcement on X, the company does not indicate that it will monitor this system to reduce engagement bait. Instead, it states that creators will earn more money through this approach.
“Payouts are increasing and you'll now be paid based on engagement with your content from Premium users - not ads in replies,” X said in a post.
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