Like other social media companies, Snap Inc. has been trying to reduce its reliance on pure ad revenue, and the company revealed on Monday that it’s taken a small step along that journey.
introduced its Snapchat+ paid subscription program in late June, and the company announced in a blog post on Monday that it now has more than one million paying members for the service. Snap shares rose more than 5% in Monday trading.
Snapchat+ membership numbers pale in comparison to the company’s 347 million daily active users last quarter, but early hints of Snap’s relevance to its most loyal users as the program offers features quite specialized. The first iteration of Snapchat+ lets users track their ranking as one of their friends’ most Snapped connections. It also allowed users to see which of their stories friends chose to review and see a 24-hour “Ghost Trail” showing the location history of friends who chose to share that information.
Snap announced more features on Monday, including new backgrounds for Bitmoji avatars and the ability to choose a “signoff” emoji that would appear at the end of a user’s Snapchats. Additionally, Snap will make Snapchat+ member replies more visible to “Snap Stars” or creators.
Snapchat+ costs $3.99 per month. Twitter Inc. TWTR,
offers its own subscription feature for $4.99 per month, Twitter Blue, which allows users to customize the app’s theme and logo, among other features. Online dating apps have also seen success with a subscription approach, with Match Group Inc.’s MTCH,
Tinder Gold and Tinder Plus subscription offers have contributed to revenue growth in recent years.
Snap stock has plunged by half over the past three months, as the S&P 500 SPX,
added around 7%, amid concerns about the online advertising industry during the current period of economic uncertainty.