Snapchat has more than 2 million paid subscribers on its Snapchat+ program, the company said during its latest earnings report. Snap noted that the paid plan, which costs $3.99 a month, is a part of “diversifying” its revenue pipelines.
The social network first launched Snapchat+ in June 2022 in countries like the U.S., Canada, the U.K., France, Germany, Australia, New Zealand and the United Arab Emirates. Later, it expanded the subscription service to India, Kuwait, Qatar, Oman, Bahrain, Egypt, Israel, Denmark, Norway and the Netherlands.
Snap was able to attract a million subscribers within 60 days of introducing Snapchat+. So comparatively it has taken more time for the company to reach 2 million paid users.
Snapchat+ offers users features like the ability to pin someone as their No. 1 friend; priority in replies to Snap Star, the company’s program for popular creators; and the ability see “the general direction of travel for where friends have moved recently” if they have turned on location sharing.
In the last quarter, the company introduced new things to the subscription, such as custom notification sounds, story expiration controls, customizable chat wallpapers and a plan gifting option.
According to data from analytics company Sensor Tower, Snap’s subscription was faring way better than the legacy Twitter Blue subscription. Up until October’s end, consumers had spent a total of $6.4 million on the Twitter app. In comparison, Snap’s paid plan generated $28 million after its launch, with many folks opting for the $39.99 annual plan. While the Elon Musk-led company has launched a new Twitter Blue plan that costs $8 per month, there are no estimates of how many people are actually paying for it.
Snap registered a revenue of $1.3 billion in Q4 2022, which was marginally higher than $1.298 billion for the same period in 2021. The company noted that its annual revenue jumped 12% from $4.1 billion to $4.6 billion. It also had a 17% bump in daily active users to get to the 375 million mark. However, Snap posted a loss of $288 million in the quarter, having earned a net $23 million in 2021 for the same period.
The social media platform said that the company’s revenue could decline by up to 10% year-on-year because of stiff competition from apps like TikTok. It is holding a Snap Investor Day event on February 16 to outline its plan for the future.
The company has been pushing actively to achieve revenue growth. Apart from the subscription plan, the social network has also tested a way for people to pay for Lenses. What’s more, a report from Business Insider published Tuesday indicated that Snap could also start charging people to restore their broken Snap streaks.