Snapchat+ Subscription Service: Surpassing 3 Million Users

Snap Inc. continues to innovate and expand its offerings, with its Snapchat+ subscription service recently surpassing 3 million users. The $3.99-a-month service provides subscribers with early access to features, which include the new artificial intelligence chatbot, joining the many other companies leaning into AI technology.

Snapchat+ Features and Expansion

Snapchat+ offers an array of features to its subscribers, including custom notification sounds, story expiration controls, customizable chat wallpapers, and a plan gifting option. In addition, the company has committed to allowing paid users to freeze their Snap Streaks, which gamify the process of sending and receiving Snaps and keep people hooked.

My AI Chatbot

Snapchat+ launched the My AI chatbot in February, focusing on generative AI features for subscribers. After addressing complaints about inappropriate responses, Snap implemented new safety tools for the AI bot earlier this month.

Recently, the company introduced a feature enabling subscribers to generate a background using text prompts. The AI bot will also become available to all Snapchat users, with Snapchat+ subscribers gaining an exclusive feature where the bot replies with a visual Snap based on the conversation later this year.

Expansion to Verizon’s +play Store

Snap announced at its Snap Partner Summit event that Verizon users will soon have the option to purchase Snapchat+ subscriptions through the carrier’s +play store. This expansion offers a three-month free trial for Verizon customers signing up for the service, making Snapchat+ the first of its kind on the +play platform, which predominantly focuses on streaming service subscriptions.

Financial Overview

Since the launch of Snapchat+, the company has earned $80 million through in-app purchases, including an estimated $1 million on other purchases like filters. According to Abe Yousef, senior insights analyst at Sensor Tower, 57% of Snapchat+ subscribers are based in the U.S., followed by 10% from the U.K., and 5% each from Saudi Arabia, Australia, and Canada. Snap’s annual revenue in 2022 was $4.6 billion, making subscription earnings a small fraction of the company’s overall revenue.

Impact on Snapchat’s Growth

Despite the success of Snapchat+, the 3 million subscribers represent less than 1% of the platform’s 375 million daily active users. The social network continues to add new features for all users, such as an “After Dark” shared Story and an expanding Communities feature for sharing views with classmates. Additionally, improvements to Snap Map include 3D landmarks, location sharing, and tagged places for finding trending venues.

Snapchat has seen steady growth, reaching 750 million monthly active users and 375 million daily users as of February, despite competition from Instagram and TikTok. The Snapchat+ expansion follows a challenging 2022, which saw the company lay off 1,300 workers and experience the early demise of its Pixy selfie drone.

Conclusion

Snapchat+ has shown promise in attracting users and generating revenue, albeit a small fraction of the company’s overall earnings. As the service expands and continues to offer exclusive features, it has the potential to help Snap bounce back from its recent challenges and reduce its reliance on advertising revenue.