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While that would take a cut out of the platform鈥檚 ad revenues, X isn鈥檛 Musk鈥檚 most profitable venture and he may prioritize an anti-government stance over profits.

How it affects advertising: While a less-expensive ad-free tier might be appealing to audiences, it could have an impact on YouTube鈥檚 expected ad revenue growth. However, the new tier is likely to attract more consumers and give YouTube a boost in the video-streaming landscape鈥攎eaning lost ad revenue and a potential decline in advertising spend on the platform could be offset by subscription fees.

X adds automated, AI-generated ad creation: The move is another attempt for X to win back brands the platform lost.

Ad sales could span both entities, and while sports will fall under the TV division, it is expected that HBO Max will continue offering sports streaming. The trend: The move comes as WBD struggles with overall business declines, primarily due to dwindling studio and linear revenues as time spent with TV continues its downward trend.