Snap Inc (SNAP.N), parent company of social media app Snapchat, announced on Monday that it has reached 1 million subscribers for its Snapchat+ premium subscription, which it launched in June as a new revenue source.
Social media companies such as Snap, Twitter Inc (TWTR.N), and Meta Platforms Inc (META.O), which make the majority of their money from selling digital advertising, are facing a weakening ad market as a result of record-high inflation, which is causing brands to cut back on marketing spending.
Snap’s stock dropped 25% last month after reporting disappointing second-quarter earnings, owing to lower-than-expected advertising demand. CEO Evan Spiegel stated that the company would work to accelerate revenue growth, in part through new revenue sources.
Snapchat+, which costs $3.99 per month in the United States, gives users access to 11 exclusive features that are not yet available to all users. New Snapchat app icon designs and the ability for subscribers to have their messages more visible to celebrities on Snapchat were among four new features announced Monday. Subscribers can also use Snapchat on their desktop computers.
Snap announced that the paid subscription feature is now available in more countries, including Saudi Arabia, India, and Egypt, for a total of 25 markets.
Twitter, which is in a legal battle with billionaire Elon Musk over his attempt to back out of a $44 billion deal to buy the company, previously launched Twitter Blue, a $4.99 per month subscription product. Facebook and Instagram do not currently offer paid subscriptions.