The World Reacts as Twitter, Now 'X,' Embraces a New Identity
The online world is buzzing with excitement following the recent announcement of a name change by the app formerly recognized as Twitter. Last week, X.com seamlessly led to Twitter.com, the company's headquarters proudly displaying a dynamic X in place of the once-familiar bird logo, and the app now presents itself as "X" within the Apple and Google app stores. After the evolution of Coca-Cola, Twitter’s rebranding news has taken over the entire social media.
The rebrand marks another milestone in Twitter's continuous evolution, previously known as a virtual gathering place for highly-networked individuals, now aspires to become an all-encompassing application, as articulated by the newly appointed CEO, Linda Yaccarino.
Billionaire Elon Musk, the owner of the company, recently stated that the acquisition of Twitter by X Corp serves dual purposes: safeguarding freedom of expression and catalyzing the growth of X, the comprehensive all-in-one application.
"The Twitter name was fitting in its early stages, signifying concise 140-character interactions reminiscent of avian tweets. However, with the platform's expanded capabilities, which now encompass lengthy video content and plans to introduce comprehensive communication features and full financial management in the upcoming months, the name has outgrown its original context," he elaborated.
What are the app's forthcoming functionalities?
Musk has openly expressed his ambition to transform Twitter into what's commonly referred to as a super-application, akin to China's WeChat. Presently, there is no American counterpart to such a comprehensive app, but experts in the field envision an application that encompasses virtually every online activity a user might desire.
"The app's users can engage in a myriad of activities within the platform, such as listening to podcasts, making purchases, or watching videos," remarked Nii Ahene, Chief Strategy Officer at Tinuiti, a marketing firm.
Twitter currently permits users to participate in live audio discussions, convey lengthier text messages, and stream videos, as exemplified by the recent debut of a show hosted by former Fox News anchor Tucker Carlson on the platform. If Twitter's foray into paid subscriptions proves fruitful, it might eventually explore the possibility of sharing a portion of the subscription revenue with its users.
"In principle, they could evolve into a more widely embraced counterpart to platforms like Patreon or similar services," remarked Ahene. "Nevertheless, the realization of this vision remains uncertain. This is not the primary reason why people flock to Twitter today, so repositioning the company would necessitate substantial investment and time, especially given the relatively small team currently managing these efforts.
What's the significance of the letter X?
Musk has demonstrated a long-standing fascination with the letter X, as evident from his initial startup, which he named X.com. (Following a merger, the platform became PayPal, although Musk purportedly advocated for retaining the name X, as per biographer Walter Isaacson.) Upon acquiring Twitter, Musk reportedly messaged Isaacson, expressing his enthusiasm for finally realizing X.com in the manner he envisioned, with Twitter serving as a catalyst.
The letter X consistently emerges in Musk's various ventures, encompassing his space exploration endeavor, SpaceX, his recently introduced artificial intelligence application, xAI, and the Model X, one of the earlier models produced by the electric car company, Tesla. Musk even christened his child with singer Grimes with the name X.
During a recent appearance on the Joe Rogan Experience, he clarified the pronunciation of his son X Æ A-XII's name, stating, 'It's simply the letter X.'
Musk reacquired ownership of X.com six years ago and officially altered Twitter's legal name to X Corp in April. This past weekend, the X.com domain started redirecting to Twitter.com, and on Monday, a crane initiated the removal of Twitter's iconic bird logo from the firm's San Francisco headquarters. However, law enforcement intervened shortly after the commencement of the work.
What implications does this hold for Twitter?
At present, the platform's rebrand constitutes a mere alteration in nomenclature, devoid of any novel features. This aligns with Musk's seemingly favored product strategy of generating anticipation upfront and delivering considerably later.
However, the name modification implies that Musk is inclined to maintain control of the company in the immediate future, according to Mandeep Singh, an analyst at Bloomberg Intelligence. Following Musk's acquisition in April 2022, some observers speculated that the billionaire might enact changes within Twitter and promptly transfer ownership to another party, Singh noted.
"Given the name change, that option is no longer viable — I believe there's now a diminished likelihood of finding another potential buyer," he remarked.
What obstacles or impediments are in the way?
To be certain, there exist numerous obstacles that could hinder the success of an "everything app," ranging from potential user confusion to difficulties in attracting a sufficient number of advertisers. Just like the evolution of Coca-Cola, Twitter’s rebrand will also have to face some challenges.
Aaron Goldman, the Chief Marketing Officer for Mediaocean, an advertising partner of Twitter, observed, "If you look at what Tesla has achieved in terms of advertising, which is quite limited, [Musk] firmly believes that a superior product speaks for itself, eliminating the need for extensive advertising. Meanwhile, numerous prominent brands and corporations allocate millions of dollars to Twitter advertising and hold a contrary perspective."
Analysts suggest that expanding the platform's scope to encompass features like shopping and paid subscription content could potentially foster long-term prosperity by diversifying revenue streams and reducing dependence on the willingness of large companies to spend.
Nonetheless, in the short term, realizing these capabilities would necessitate substantial investments in personnel and infrastructure. It remains uncertain whether a company that downsized its workforce by approximately three-quarters and is presently entangled in multiple lawsuits over unpaid debts can successfully undertake such an endeavor.
Singh remarked, "The necessary investment, especially in cloud infrastructure, is significant — we're discussing initial expenditures ranging from $40 billion to $50 billion. As a standalone application, Twitter does not possess the infrastructure essential to evolve into a comprehensive 'everything app.'
