Elon Musk's $8 Twitter Blue Pricing: Inside the Decision-Making Process
New Book Reveals Elon Musk’s Twitter Blue Pricing Strategy
A new book titled “Character Limit” has shed light on how Elon Musk sought advice from his inner circle to determine the pricing for Twitter Blue, the platform’s premium subscription service. The book, authored by New York Times reporters Kate Conger and Ryan Mac, details the decision-making process that led to the $8 monthly fee for the service.
According to the book, Musk consulted a small group of friends and acquaintances, many of whom had little to no experience running a social media company. Among those approached was venture capitalist David Sacks, who suggested increasing the price from $4.99 to $20 per month.
Sacks argued for a higher price point, stating in an email, “A luxury brand can always move down-market, but it’s very hard to move up-market once the brand is shot.” Other advisors, including tech podcaster Jason Calacanis and author Walter Isaacson, offered varying suggestions ranging from $99 per year to a significantly lower price point.
Musk initially considered charging $100 annually for the service. However, his close assistant, Jehn Balajadia, advocated for a more affordable option, citing economic concerns for many users. This led Musk to settle on the $8 monthly fee, which he equated to the cost of a Starbucks coffee.
On November 1, 2022, Musk announced the decision via Twitter, stating, “Twitter’s current lords & peasants system for who has or doesn’t have a blue checkmark is bullshit. Power to the people! Blue for $8/month.”
Since its implementation, the service has been rebranded as X Premium following Twitter’s transformation into X. Recent reports suggest that the premium subscription has attracted between 950,000 and 1.2 million subscribers, representing less than 1% of the platform’s total user base.
The book “Character Limit: How Elon Musk Destroyed Twitter” provides an in-depth look at Musk’s tumultuous takeover of the social media giant and the subsequent changes implemented under his leadership.
