Quick Hit:

X, formerly Twitter, has launched a new TV app in an attempt to boost its video content and attract advertisers. This is part of the platform's broader push to turn itself into a video-first destination.

Key Details:

• X's new TV app is now available on Amazon Fire TV and Google TV.

• The company plans to add a video tab on the platform, but it has not yet launched.

• X is trying to reverse declining ad revenues amid reports that its valuation has dropped significantly.

Diving Deeper:

X, the social media platform previously known as Twitter, has taken a significant step into the video space with the launch of its new TV app. The app is now available on several platforms, including Amazon Fire TV and Google TV, with plans to roll out to additional platforms in the future. This move marks X’s latest attempt to reinvigorate its advertising business, which has struggled since Elon Musk acquired the platform for $44 billion.

Years ago, Twitter experimented with TV apps but ultimately abandoned the idea due to lukewarm reception. Now, with X facing declining revenues and user engagement, the company is once again betting on video as a way to attract more advertisers, creators, and users. In addition to the TV app, X has announced plans to introduce a new video tab on its main platform, although the feature has not yet been launched.

The company’s push into video comes at a critical moment. X has been hemorrhaging revenue, with major advertiser Fidelity marking down its valuation by over 70% at the end of 2023. Once valued at $44 billion, X is now estimated to be worth around $12.5 billion. To combat the downturn, the platform filed an antitrust lawsuit against an advertising association in August, accusing its members of boycotting the site. Though the group disbanded shortly after, X continues to pursue the suit.

Despite the challenges, X’s video-first strategy reflects its long-standing ambition to carve out a space in the growing video content market. In 2016, Twitter launched several TV apps to showcase live events and social media discussions, but they were shuttered two years later due to low engagement. Today, X hopes its new TV app will succeed by offering content from organizations, publishers, and individual creators, many of whom also post on platforms like YouTube, which dominate the market for TV-based content.

However, the platform’s ability to draw high-quality, original video content remains uncertain. The platform’s ad revenue-sharing program for creators, launched last year, has had mixed results. Popular YouTuber MrBeast highlighted this by revealing he earned $263,000 from ads on his X videos, but noted that such payouts may not be sustainable for smaller creators. While Musk has explored other video formats, including video streaming on Spaces and video calls, these have yet to become significant revenue drivers for X.

It remains to be seen whether X’s pivot to video will bring in enough engagement to turn the tide for the struggling platform.