Snapchat said more than 1 million people globally are paying for its Snapchat Plus subscription service. The company launched the service six weeks ago.
Why it matters
The news points to how social media companies are trying to make more money outside of ad sales.
More than 1 million people worldwide are paying for Snapchat's subscription service, the social media company said Monday.
It's the first time Snapchat's parent company, Snap, has revealed how many people subscribe to Snapchat Plus, a subscription service the social media company launched six weeks ago, in late June.costs about $4 per month in the US and gives users early access to features the company is testing. The service is another example of how social media platforms are trying to make money outside of advertising as they try to keep their footing during an economic downturn.
Twitter has a similar monthly subscription offering, known as Twitter Blue, but the company hasn't revealed how many people pay for that product.
Snapchat has a bigger audience than Twitter, with 347 million daily active users. Twitter has 238 million "monetizable" daily users. Snapchat is also more popular among teens, a valuable market for advertisers. About 59% of US teens say they use Snapchat while 23% of teens say they use Twitter, according to a survey released by the Pew Research Center last week.
Snap, like other social media companies, is facing challenges making more money as advertisers pull back spending. In July, the company's stock tanked more than 39% after Snap reported disappointing second-quarter earnings. Snapchat is also planning to lay off workers, The Verge reported, citing people familiar with the matter. App market intelligence firm Sensor Tower estimates that Snapchat made roughly $6 million from mobile app revenue in July.
Snap said it's adding more features to its subscription service, such as making replies to Snapchat stories more visible to high-profile users. Stories is a feature that lets people post photos and videos that vanish in 24 hours. The company is also adding more backgrounds for Bitmoji avatars, giving people the ability to pick an emoji that friends can see after a Snap (photos and videos people send through the app), and choose custom app icons.
Snapchat Plus is available in the US, Canada, the United Kingdom, France, Germany, Australia, New Zealand, Saudi Arabia, United Arab Emirates, India, Kuwait, Qatar, Oman, Bahrain, Egypt, Israel, Sweden, Denmark, Norway, Netherlands, Switzerland, Ireland, Belgium, Finland and Austria.