Snapchat+ subscription now has more than 3 million users

1 year ago 95

Snap said today that its Snapchat+ paid plan has more than 3 million users. At its Snap Partner Summit event, the company added that in the coming days, Verizon users will have the option to buy Snapchat+ subscriptions through the carrier’s subscription store called +Play.

The company launched the paid tier last June and expanded to multiple regions in the following months. Snap reached the 1 million subscriber mark last August and the 2 million subscriber mark in February indicating steady growth.

And yet, 3 million subscribers still represent less than 1% of the 375 million daily active users on the platform.

Snapchat has added a ton of new features in the past few months like custom notification sounds, story expiration controls, customizable chat wallpapers, and a plan gifting option. It has also promised that it will allow paid users to freeze their Snap Streaks.

The company has also focused on bringing generative AI features to subscribers. In February, it launched My AI chatbot for Snapchat+ users. Following complaints about the bot posting inappropriate responses, the company announced new safety tools around the AI bot earlier this month. In the past few weeks, Snap has also introduced a feature that lets subscribers generate a background through text prompts.

As the company is making My AI bot available to all Snapchat users, it said that Snapchat+ users will now get a feature where the bot will reply to them with a visual Snap — essentially generating an image based on the conversation.

The company has earned $80 million through in-app purchases — this figure also includes an estimated $1 million on other purchases like filters — since the launch of Snapchat+, according to Abe Yousef, Senior Insights Analyst at Sensor Tower. Yousef noted that 57% of Snapchat+ subscribers are based out of the U.S., 10% of them are from the UK, and 5% each from Saudi Arabia, Australia, and Canada.

For comparison, Snap posted an annual revenue of $4.6 billion in 2022. So, at the moment, subscriptions represent a fraction of the company’s earnings.