It’s $4 per month, and you’ll still be delivered ads!
On Wednesday, Snap Inc. (NYSE:SNAP) unveiled Snapchat+, a new subscription-based tier that would cost $3.99 per month and include "a mix of exclusive, experimental, and pre-release features."
The new service will be released to Snapchat’s 332 million users across the US, Canada, the UK, France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates.
With the new paid tier, Snapchat aims to tap a certain segment of active users it believes will pay for the following features:
- Exclusive Snapchat Icons
- Special profile badges
- Pin a friend as BFF (Best Friend Forever)
- Ability to see who has watched your “Snap Story” more than one time
The new version of the app is similar to Twitter Inc. (NYSE:TWTR) Twitter Blue, which gives users a set of paid features while still serving up ads.
Benzinga’s take: Snap shares are down more than 70% year-to-date. The company’s business model has always relied on advertising — 99% of its revenue in 2021 came from advertising, and the other 1% came from Spectacles. Snapchat+ is an additional revenue stream — a beta program, packaged as a premium service.
