Snap, parent company of the social media app Snapchat, announced that Snapchat+ has reached 1 million premium subscribers.
Snapchat + costs $3.99 a month in the United States and provides access to 11 exclusive features that are not yet available to general users. Snap also added four new features on Monday, including new Snapchat icon designs and the ability for subscribers to make their messages more visible to celebrities on Snapchat. Subscribers can also use Snapchat on desktops.
Snap is expanding the paid subscription feature to other countries, including Saudi Arabia, India and Egypt, for a total of 25 markets.
For most social media platforms, including Snap, ads remain their biggest source of revenue. However, persistent inflation and the economic downturn have forced many companies to cut back on their planned spending on advertising.
The decline in ad revenue resulted in a sharp decline in social media platform revenue. Snap posted disappointing second-quarter results due to weaker ad demand.
The decline in advertising revenue has forced Snap to invest in other outlets that will help fuel the company’s declining revenue.
The sources for this piece include an article in Reuters.