Snapchat+ Surpasses 5 Million Subscribers as It Adds Exclusive Features

Snap, the parent company of Snapchat, has reportedly surpassed 5 million subscribers for its paid service, Snapchat+.

That total is up from 3 million subscribers in April, and marks a milestone on the company’s strategic shift toward generating new revenue streams, Bloomberg reported Thursday (Sept. 21).

With 5 million subscribers, Snapchat+ has the potential to generate an estimated $240 million in annual revenue, considering the $3.99 monthly fee, according to the report.

The paid subscription service offers members early access to exclusive features like an artificial intelligence (AI)-generated selfie maker, custom wallpapers for chats and access to the company’s AI chatbot, the report said.

This move is noteworthy in the social media industry, where apps have traditionally been free, per the report. The growing number of subscribers indicates that Snap’s bet on a paid option is paying off.

Snap Vice President of Product Jack Brody told Bloomberg: “They’re excited to receive early access to experimental, exclusive features, and the more that we bring to the table, the more likely that is to be true.”

Snapchat+ was launched in June 2022 as part of Snap’s broader efforts to combat a slowdown in ad revenue within the social media industry, according to the report. The company underwent job cuts and a shift in focus toward new revenue-generating opportunities, including artificial intelligence and augmented reality technologies. The introduction of the subscription service aimed to diversify Snap’s revenue streams.

At the time of the launch, Snap was in the midst of its weakest-ever quarterly sales growth, due to the troubles in the digital advertising market, and CEO Evan Spiegel said the quarterly results “did not reflect our ambition.”

“We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our top-line growth,” Spiegel said at the time.

Snap’s success with Snapchat+ highlights the potential for social media companies to monetize their platforms through paid offerings, the report said. Other social media platforms, such as Meta Platforms and X, have also explored paid options. Meta offers a verification service and increased reach for a monthly fee, while X’s owner, Elon Musk, has considered implementing a universal membership fee to combat bots on the platform.