Snap Inc. announced on Wednesday that it would roll out a $3.99/month subscription plan for Snapchat. The premium tier will unlock exclusive and pre-release features.
The Plus plan will include functions such as pining your close friend as a BFF (best friend forever) and customizing the app’s icon. The firm cited that the development is for the most passionate users.
The initial launch of Snapchat+ will be in the United States, Canada, and the United Kingdom. It will also be available in France, Germany, Australia, New Zealand, Saudi Arabia, and the United Arab Emirates.
Accordingly, the announcement comes after the social media company’s disappointing sales outlook for the current quarter. Chief Financial Officer Derek Andersen said at the time that macroeconomic conditions like supply chain disruptions, labor shortages, and inflation weighed on advertising. The units stand as the primary revenue source for the company.
In line with this, its new Snapchat+ offer could help the company diversify its income sources. However, senior vice president of products Jacob Andreou explained that the company does not expect the plan to become material support.
Nevertheless, shares of Snap closed by 1.68% or 0.23 points to $13.96 per share yesterday. However, the company has slumped by 70.04%, or 32.63 points since the start of the year.
Snap, Twitter, Telegram premium versions
Aside from Snap, other social media platforms have also rolled out subscription services recently.
Last year, Twitter announced the Blue subscription for members in the US and New Zealand. The addition offered ad-free access to other websites for $2.99 a month for iOS, Android, and web users.
Earlier this month, chat app Telegram introduced Telegram Premium for $4.99 monthly. The option allows a more convenient experience on the platform without the advertisements.
Online businesses like Snap are now under pressure as companies cut back on ad budgets. This move is in response to the lingering red-hot inflation and weakening consumer spending.