X launches a video tab as it seeks to restore user growth

The news: X (formerly Twitter) is debuting a dedicated video tab that takes users to an infinitely scrolling vertical video feed, it announced this week.

The company has experimented with several video features in the last year as it looks to recreate the success of rival platforms. A connected TV app, vertical video feed, and Zoom-like video conference calling are among the features it has tested.

Zooming out: X faced a well-publicized advertiser exodus shortly after Elon Musk took ownership of the company, driven by brand safety and impersonation concerns. His proximity to the Trump administration (literally: The New York Times reports Musk may get an office in the West Wing) has caused some to return.

• Warner Bros. Discovery, Comcast, Disney, and others have returned to the platform in recent months, per Fortune—all companies that are facing government scrutiny or plan significant acquisitions or divestitures in the next four years.
• Still, X is struggling to achieve its pre-Musk prominence. Twitter’s 2021 and 2022 US ad revenues were $2.43 billion and $2.36 billion, respectively. But spending plummeted to $1.13 billion in 2023, and is expected to further slide to $1.03 billion by 2026.

Can video change the tide? It’s unlikely. X is calling itself a video-first platform in the hopes of capitalizing on vertical video’s power to capture user and advertiser attention, but it could have trouble attracting creators or reaching users outside its core audience.

• Other platforms like LinkedIn are also making bets on vertical video to boost engagement and tap into the demand for video ad space. The uncertainty around TikTok’s ban also opens opportunities for competitors to pounce on its market.
• However, X’s user growth is moving in the wrong direction, set to decline 3.8% in the US this year to 51.8 million users. Instagram and YouTube are poised to benefit most from a TikTok decline, leaving X with limited opportunities to take advantage.

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