THE IMPACT OF ELON MUSK'S DECISIONS: MILLION-DOLLAR LOSSES FOR X-TWITTER

 

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The advertising crisis in the social media company X , owned by the controversial Elon Musk, will be a mandatory topic in universities of the future.

Since Elon Musk took the reins of X in October 2022, we have witnessed a series of changes that have shaken the foundations of this platform. The most notable has been the drastic reduction in content moderation, a decision that civil rights groups say has led to a sharp increase in hate speech.

This shift in policy has had a direct impact on advertising revenue: the company could be looking at a loss of around €75 million by the end of this year, according to a New York Times report .

Big names like Walt Disney and Warner Bros. Discovery have taken a firm stance, pausing their advertising campaigns on X. This decision is not trivial, as it reflects a growing concern about the association of their brands with controversial content. And that's not all, more than 200 major advertisers , including Airbnb, Amazon, Coca-Cola and Microsoft, are reconsidering their advertising presence on the platform.

In an unexpected twist, X has struck back, suing media watchdog group Media Matters . The accusation lies in a report that linked advertisements from major brands to publications that praised figures such as Adolf Hitler and the Nazi party. This legal move is indicative of the tensions brewing within the digital ecosystem.

Despite this discouraging outlook, X's financial situation is not completely bleak. The company has reported that some advertisers are returning and others are increasing their ad spend. However, it is undeniable that the net impact remains negative, with advertising revenue in the US declining by at least 55% since Musk took control.

Looking ahead, this situation raises fundamental questions about the responsibility of social media platforms in content moderation and how this affects not only society at large, but also their economic viability. Musk's decision to reduce content moderation has triggered a series of events that call into question the sustainability of his business model. Are we facing a paradigm shift in the social media industry, where freedom of expression and corporate responsibility meet at a crossroads?

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