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Home TECHNOLOGY

Elon Musk’s X to Fund Legal Bills for Users

by Ayushi
August 6, 2023
in TECHNOLOGY, WORLD
Earlier, while responding to question from the Tesla Owners Silicon Valley account asking users about their preference between mute and the block feature, Musk had noted that blocking will be deleted as a feature expected for direct messages.
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Elon Musk’s social media platform, X, previously known as Twitter, has taken a bold step to support its users who face consequences from their employers due to their activity on the platform. Musk announced that X will fund the legal bills of individuals who have been treated unfairly by their employers because of their posts or likes on the platform. The commitment is open-ended, without any limitations on the funding amount, demonstrating X’s dedication to protecting its users’ freedom of expression.

 

X has been making significant changes to its platform, including rebranding and expanding its focus beyond just being a microblogging site like its previous identity as Twitter. The platform aims to become an “everything app” and broaden its horizons to cater to diverse user interests.

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Recently, X reached a milestone with over 540 million monthly users, highlighting its strong traction in terms of user engagement. However, despite this growth, the platform has faced financial challenges, including a 50% drop in advertising revenue and substantial debt burdens. An expected upturn in advertising revenue in June did not materialize, leading to financial strain.

 

One contributing factor to advertisers withdrawing their support is the platform’s content moderation compromise, which has caused concerns about ads appearing alongside inappropriate content. Advertisers’ withdrawal has further exacerbated X’s financial difficulties.

 

In response to these challenges, X has implemented stringent cost-cutting measures, resulting in the layoff of thousands of employees. Elon Musk emphasized that the company has managed to significantly reduce its non-debt expenditures from a projected $4.5 billion to $1.5 billion in 2023.

 

As the company navigates these financial hurdles, X is taking its time to share advertising revenue with content creators to manage the large number of requests. Only subscribers of X Premium (Blue) will be eligible to receive their share in the ad revenue.

 

Despite the obstacles, Musk’s commitment to supporting users facing employer backlash through funding legal bills showcases X’s dedication to its community. By standing up for their users’ rights, X aims to maintain user trust and engagement while striving to address declining advertising revenue and financial challenges.

Tags: advertising revenuecontent moderationElon Muskemployer backlashFinancial Challengeslegal supportSocial Media ActivityX (formerly Twitter)
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