BIZ

X to go behind paywall?

Published

2 years ago

September 19, 2023

editor

Elon Musk has suggested that all users of X, formerly called Twitter, may have to pay for access to the platform.

In a conversation with Israeli Prime Minister Benjamin Netanyahu, the billionaire said a payment system was the only way to counter bots.

“We’re moving to having a small monthly payment for use of the system,” the Tesla and SpaceX boss said.

The BBC approached X for further details but has not yet received a statement from the company.

It is unclear whether this was just an off-the-cuff comment, or a signal of firmer plans that have yet to be announced.

Mr Musk has long said that his solution for getting rid of bots and fake accounts on the social media platform is charging for verification.

Since taking over Twitter last year he has looked to incentivise users to pay for an enhanced service, which is now called X Premium.

This has been done by giving paid subscribers more features, like longer posts and increased visibility on the platform.

However, users can currently still use X for free.

Although there is a clear financial interest for the company to charge users, Mr Musk insisted that getting people to pay for the service is aimed at tackling bots.

“A bot costs a fraction of a penny” to make he said. “But if somebody even has to pay a few dollars or something, some minor amount, the effective cost to bots is very high”.

X Premium currently costs $8 (£6.50) a month in the US. The price differs depending on which country a subscriber is in.

The world’s richest person said that he was now looking at cheaper options for users.

“We’re actually going to come up with a lower tier pricing. So we just want it to be just a small amount of money,” he said.

“This is a longer discussion, but in my view, this is actually the only defence against vast armies of bots,” Mr Musk added.

However, a risk is that by putting X behind a paywall it may lose a large chunk of its users. That in turn, could drive down advertising revenue, which currently accounts for the vast majority of the company’s income.

Mr Musk’s conversation with the Israeli prime minister also touched on antisemitism on X.

The platform has been accused by the Anti-Defamation League (ADL) campaign group of not doing enough to stop antisemitic content.

In a statement, the organisation said that Mr Musk was “engaging with and elevating” antisemites.

Earlier this month, he said that the company would sue the ADL to “clear our platform’s name”.

In the conversation with Mr Netanyahu, Mr Musk reiterated that he was “against antisemitism”.

Mr Netanyahu accepted the balance between free speech and content moderation was a challenge but urged Mr Musk to get the balance right.

“I hope you find within the confines of the First Amendment, the ability to stop not only antisemitism… but any collective hatred of people that antisemitism represents,” he said.

“I know you’re committed to that”, Mr Netanyahu added.

(BBC News)

BIZ

Car giant Ford & Barbie maker Mattel warn over tariffs costs

Published

3 days ago

May 6, 2025

editor

Barbie maker Mattel says it will put up the prices of some of its toys in the US as President Donald Trump’s tariffs increase its costs.

The firm also says it will cut the number of products it makes in China for the American market.

At the same time, car making giant Ford says the levies will cost it about $1.5bn (£1.13bn) this year.

They join a growing list of big businesses warning about the impact of US tariffs on their companies and the wider economy.

“Given the volatile macroeconomic environment and evolving US tariff landscape, it is difficult to predict consumer spending, and Mattel’s US sales in the remainder of the year and holiday season,” Mattel said as it updated investors on its financial performance.

The US accounts for about half of Mattel’s global toy sales. It imports around 20% of its goods sold there from China.

The company said it plans to reduce those Chinese imports to the US to below 15% by next year.

Since returning to the White House in January, Trump has imposed new import taxes of up to 145% on goods from China.

His administration said last month that when the new tariffs are added on to existing ones, the levies on some Chinese goods could reach 245%.

China has hit back with a 125% tax on products from the US.

Apart from China, Mattel imports products – including Barbie dolls and Hot Wheels cars – from Indonesia, Malaysia and Thailand.

The three countries were also hit with steep tariffs by Trump in April, before they were paused for 90 days.

Last week, Trump acknowledged the potential impact of tariffs. American children might “have two dolls instead of 30 dolls”, he said, but added that China would suffer more than the US.

Carmaker Ford said it expected tariffs to add $2.5bn to its overall costs this year, mainly due to the increased expense of Mexican and Chinese imports.

But the firm said it had cut about $1bn of those added costs by taking various measures, including transporting vehicles from Mexico to Canada to avoid US tariffs.

The firm also suspended its annual earnings guidance to investors because of uncertainty around Trump’s trade policies.

In April, firms including technology giant Intel, footwear makers Adidas and Skechers, and consumer goods group Procter & Gamble detailed the impact of tariffs on their businesses.

“The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing,” Intel’s chief financial officer David Zinsner said during a call with investors.

Sportswear giant Adidas warned tariffs would lead to higher prices in the US for popular trainers, including the Gazelle and the Samba.

The finance chief of footwear firm Skechers, David Weinberg, told investors: “The current environment is simply too dynamic from which to plan results with a reasonable assurance of success.”

And Procter & Gamble – which makes Ariel laundry detergent, Head & Shoulders shampoo and Gillette shaving products – said it was considering changes to its prices to make up for the extra cost of materials sourced from China and other places.

(BBC News)