When Snapchat revealed last month that it had amassed 5 million paying subscribers for its Snapchat+ service, it appeared to be a remarkable feat. This milestone marked the halfway point to the 10 million subscriber goal set by CEO Evan Spiegel just a few months earlier, positioning it as a “medium-term” objective.
The service’s rapid success within just 15 months of its launch demonstrated that despite Snapchat’s reputation as an app primarily used by teenagers, users are willing to invest in a premium experience on the platform. With 5 million subscribers contributing $3.99 per month, Snapchat+ is on track to generate approximately $239 million in annual revenue.
Nonetheless, this subscriber count represents only a fraction of Snapchat total user base.
The platform has quietly evolved into one of the world’s fastest-growing social networks. As of the end of June, it boasted 397 million daily active users, surpassing Twitter, now known as X. The challenge facing the company is now to effectively monetize this vast user base and reverse a string of disappointing financial results. When Snap reports its earnings next week for the quarter ending in September, it is expected to mark its third consecutive decline in revenue.
Despite pioneering some of the most significant social media features in the past decade, such as stories and filters, Snapchat is often perceived as an app primarily for younger audiences, with less reach and cultural relevance compared to competitors like TikTok, Instagram, and Facebook. However, Snapchat’s user growth indicates that the app remains one of the most influential platforms, possibly due to its unique approach that deviates from the course taken by most rivals.
While other platforms increasingly focus on discoverability and showcasing entertaining content from unfamiliar individuals, Snap continues to adhere to its long-standing strategy of facilitating connections between users and their real-life social circles. Jack Brody, Snapchat’s Vice President of Product, emphasized, “Ultimately, the most rewarding connections are with the people you care about the most, and we aim to ensure that these connections endure, offering experiences that enhance them. By prioritizing this, we believe we’re addressing real challenges faced by everyday users and delivering genuine, distinctive value.”