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• Launched in nine countries, paid subscription could help Snapchat diversify its revenue sources
• Snapchat+ includes pre-release, experimental, and exclusive features
Snap Inc (NYSE: SNAP) on Wednesday said it is launching a $3.99/month subscription plan for Snapchat users that unlocks exclusive and pre-release features in a push to diversify its revenue stream outside advertising.
Snapchat plus, the subscription plan, comes after the social media company in May forecasted that it will not meet its own revenue and profit targets in the current quarter.
Snap CFO Derek Andersen, at the time, said macroeconomic conditions like supply chain disruptions, labor shortages and inflation are impacting advertising, the company’s primary source of revenue.
Although the new subscription plan could help the company diversify its revenue sources, Snapchat’s senior vice president of products, Jacob Andreou, told The Verge that the company doesn’t expect the plan to become a “material new revenue source.”
The Plus plan includes pre-release, experimental and exclusive features such as pining your close friend as a BFF (best friend forever) and customizing the app’s icon, and is intended for the “most passionate members” the company said in a press release.
Other social media platforms have also rolled out subscription services to expand their revenue source.
Twitter in 2021 announced the Blue subscription that offers ad-free access to other websites for $2.99 a month. Chat app Telegram introduced Telegram Premium in June.
Snap launched its premium plan in the United States, Canada, the United Kingdom, France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates.
Picture Credit: CNN
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