X Expands Video Push with Introduction of TV App

Years ago, Twitter attempted to venture into the world of TV apps but ultimately walked away due to a lackluster reception. Now, as it struggles to revive its advertising business, its new incarnation, X, is hoping for a second chance. In a bid to reclaim momentum, the company has announced the launch of a new TV app available on several app stores. This move is part of a broader strategy to reposition X as a “video-first platform,” aiming to attract advertisers, creators, and partners by leaning heavily into video content.

This renewed focus on video content will also extend to a new video tab within the X app itself, although the tab has yet to officially launch. Meanwhile, users have already spotted a beta version of the TV app on platforms like Amazon Fire TV and Google TV. X has confirmed that the app is available on Amazon Fire TV, though there is no word yet on its availability for other major platforms such as Apple TV or Roku.

This pivot toward video and the introduction of TV apps comes at a critical time for X. The company is grappling with declining revenue and the erosion of its advertising business, a problem exacerbated by increasing concerns over the platform’s growing toxicity and falling user engagement. These challenges have taken a heavy toll on the company’s valuation. Notably, Fidelity, one of the platform's major investors, marked down the value of its investment by as much as 71.5% at the end of 2023, implying a valuation of just $12.5 billion. This is a sharp contrast to the $44 billion Elon Musk paid to acquire Twitter and take it private.

In an attempt to address these mounting challenges, X filed an antitrust lawsuit in August against an advertising association, alleging that its members were unfairly boycotting the platform and refusing to advertise on it. Shortly after the lawsuit was filed, the advertiser group disbanded, but X continues to pursue the case in an effort to combat the loss of ad revenue.

The new TV app appears to aggregate and surface videos from various organizations, publishers, and creators on the platform. However, there is speculation that many of these creators are already distributing their content through other, more established platforms like YouTube, which boasts a significantly larger audience of users consuming content on TV screens. This raises questions about whether X’s move into video can generate enough interest to compete in a space dominated by established players.

This is not the first time the platform has tried to break into the TV space. Back in 2016, when it was still known as Twitter, the company launched a range of TV apps designed to allow users to watch live events and follow real-time conversations. However, those early efforts were shuttered just two years later as the company sought to cut costs and streamline operations. At the time, it was unclear how many users were actually using these apps, and they were ultimately deemed unprofitable.

Despite these setbacks, the allure of video has always remained a tantalizing but elusive opportunity for the platform. Just before Musk took control of Twitter, the company introduced a TikTok-inspired full-screen video feed, allowing users to tap on a video, switch to full-screen mode, and scroll down to view more clips. However, even with these features, Twitter failed to make significant inroads into the video market, leaving video monetization as a largely untapped revenue stream.

Now, under the stewardship of Musk and CEO Linda Yaccarino, X is once again trying to make a push into video, but the challenges remain steep. A TV app or a vertical video feed is not necessarily a novel move in today’s competitive digital landscape. The real challenge lies in persuading creators to consistently post original video content that will drive user engagement on X’s platform, rather than relying on more established outlets like YouTube or TikTok. The success of this strategy depends on whether X can offer compelling incentives to creators while simultaneously building a strong video-driven user base.

The introduction of X’s ad revenue sharing program last year was a step in this direction, but it has faced mixed reactions. Like many other creator incentive programs, X’s model is based on engagement and views. This has led to some notable successes, such as when YouTube megastar MrBeast posted a video and reportedly earned $263,000 in ad revenue through X. However, even MrBeast called the payout "a bit of a facade," noting that his large payout was likely an outlier and questioning whether advertisers truly bought into the platform as effectively as the numbers suggested.

Adding to the uncertainty, some creators have expressed confusion about X’s long-term strategy for supporting the creator economy. In March, The Wall Street Journal reported that despite meetings with Musk and other senior leaders at X, several creators were still unclear about how the platform would ultimately support and grow their businesses.

Musk’s experimentation with video hasn’t stopped there. He has tested a variety of features, including allowing video streaming on Spaces (the platform’s audio feature), enabling users to make video calls, and even trialing a video conferencing tool. Despite these efforts, X has yet to turn any of these initiatives into significant monetization opportunities.

The launch of the TV app is the latest in Musk’s ongoing efforts to transform X into a more dynamic and profitable platform. However, for this initiative to succeed, the company will need to overcome a range of hurdles. It must find a way to make its platform appealing to both creators and advertisers, while also addressing broader concerns about user safety and platform toxicity. X will also have to demonstrate that its new focus on video can attract a critical mass of viewers and creators in a crowded digital space already dominated by tech giants like YouTube and TikTok.

Ultimately, while the move into video represents a potentially lucrative opportunity, X’s ability to capitalize on it remains uncertain. With major financial pressures and declining user trust, the company faces an uphill battle in proving that its new video-first strategy can turn things around and drive meaningful growth in both user engagement and advertising revenue. Whether or not this renewed effort can transform X’s fortunes will depend on the company’s ability to execute this strategy effectively and win back the trust of both its users and advertisers.