Snapchat+ Hits 25M Subscribers, Reaches $1B Revenue Milestone
▼ Summary
– Snap’s direct revenue business has reached a $1 billion annualized run rate, driven primarily by its Snapchat+ subscription service, which now has over 25 million subscribers.
– Snapchat+ launched in 2022 for $3.99/month and has expanded with additional paid tiers, including Lens+ for AR features and a premium ad-free Platinum tier.
– The company is further diversifying by launching a paid storage plan for its free Memories feature and testing creator subscriptions that allow users to pay for exclusive content from specific individuals.
– Snap plans to continue growing Snapchat+ with a focus on customization and community-driven features as a key revenue stream alongside its advertising business.
– The success of Snap’s subscription model is influencing the industry, with rival Meta announcing plans to test similar paid subscriptions for exclusive features across its platforms.
Snap’s subscription service, Snapchat+, has propelled the company’s direct revenue business to a significant financial milestone, achieving an annualized run rate of one billion dollars. This figure represents the current revenue pace projected over an entire year. The social media platform attributes this success to its premium offering, which has now amassed over 25 million paying subscribers since its introduction.
Originally launched in 2022, Snapchat+ provides members with exclusive and early-access features for a monthly fee of $3.99. Building on its initial popularity, Snap has expanded its paid offerings over the last year to create a more diversified revenue portfolio beyond its core advertising business.
Company officials noted in a recent announcement that Snapchat+ has emerged as one of the world’s fastest-growing consumer subscription services, consistently adding subscribers each quarter. What began as a program for highly engaged users has rapidly evolved into a substantial and growing revenue stream that complements the company’s ad-based earnings.
The platform’s expansion includes several new subscription tiers. Last June saw the introduction of Lens+ for $8.99 monthly, granting users special augmented reality lenses and experiences alongside standard Snapchat+ benefits. Early this year, Snap launched a premium, ad-free tier named Platinum, priced at $15.99 per month.
In a more contentious development last September, Snapchat revealed plans to limit free storage for its Memories feature, introducing a paid storage plan costing $1.99 monthly. Snapchat+ subscribers receive up to 250GB of storage with their membership, while Platinum users are allotted a substantial 5TB.
Looking beyond its flagship subscription service, Snap recently announced an alpha test of creator subscriptions with a select group of U.S.-based influencers. Users will soon have the option to purchase monthly subscriptions to creators like Jeremiah Brown, Harry Jowsey, and Skai Jackson. These creators can set their own pricing, offering subscribers exclusive content, priority replies to public Stories, and an ad-free viewing experience for that creator’s content.
For the road ahead, Snap indicates it will continue developing Snapchat+ with an emphasis on personalized customization and features that foster community interaction. The company’s success demonstrates a viable market for social media subscriptions, a trend competitors are now exploring. Meta confirmed last month that it plans to test new subscription models offering exclusive features across Instagram, Facebook, and WhatsApp.
(Source: TechCrunch)
