During a recent live chat, Elon Musk announced that X would introduce a “modest monthly fee” for its services, citing the need to combat the prevalence of bots on the platform. However, in a subsequent interview at the Code Conference, X’s CEO, Linda Yaccarino, appeared surprised when questioned about this plan. She asked the interviewer to repeat the question and inquired if Musk had definitively stated that X was transitioning to a subscription-based model for all users, or if it was merely an idea he was considering.
CNBC’s Julia Boorstin, conducting the interview, sought to understand how such a shift would impact X’s business model, which currently relies heavily on advertising revenue. Given Yaccarino’s background at NBCU as the chairman of its advertising and partnerships group, it would have been expected for her to be well-informed if X was planning to move away from its primarily ad-supported model towards one that also incorporated user subscriptions to generate revenue (and potentially deter bots).
When pressed about the potential loss of users due to this change, Yaccarino seemed flustered and sought clarification regarding Musk’s stance on the matter. Musk had indeed stated in a livestreamed conversation with Israeli Prime Minister Benjamin Netanyahu on September 18 that X was “transitioning to a modest monthly fee.” This suggested it was not just a passing thought, as Musk explained how such a fee would discourage spammers from profiting with bots.
Yaccarino did not directly answer the question, prompting Boorstin to inquire if she had been consulted about this decision. Yaccarino vaguely replied, avoiding a direct response. Boorstin highlighted Yaccarino’s advertising background, implying it would be surprising if Musk made such a decision without her input. However, Yaccarino responded somewhat defensively, asserting her broader role in running the company and delivering the best user experience.
She proceeded to discuss X’s future plans, including expanding its services to include video streaming and transactions, and emphasized her experience in driving innovation within legacy media companies.
Despite these explanations, the question regarding user subscriptions remained unanswered. Boorstin made another attempt, asking Yaccarino for her opinion on a subscription-based X, her level of involvement in the decision-making process, and whether X should continue to offer a free tier. She also questioned whether Yaccarino functioned more as a Chief Operating Officer (COO), given that product teams at X reported directly to Musk.
Yaccarino responded somewhat curtly to the insinuation that she lacked authority, defending Musk’s pivotal role in running the product and technology teams. Some audience members reacted with laughter.
Regrettably, throughout the interview, the CEO of X did not directly address any of the questions regarding the proposed subscription model that Musk had discussed. Her responses suggested that she might be unaware of such a plan or that she considered it to be in the conceptual stage. It was unclear whether she comprehended the intended purpose of the subscription fees or how they related to combatting bots on the platform.
As a former advertising executive, Yaccarino may have been cautious not to alarm X’s advertisers by suggesting that the platform’s days as a free, ad-supported service were limited.
Overall, the interview appeared disorganized, with Yaccarino appearing flustered by fundamental questions about X’s business strategy and Musk’s recent activities, including his proposed lawsuit against the ADL, subscription plans, and staffing decisions related to election integrity. Yaccarino even contradicted Musk’s earlier statement on X’s user numbers, causing confusion regarding the platform’s actual metrics. The key takeaway was that Yaccarino and Musk may not be entirely aligned when it comes to running X, and she appeared to be out of the loop on some of the platform’s major decisions.
