Snap, parent company of social media app Snapchat, has reached 1 million subscribers for its Snapchat premium subscription, the company said on Monday, after launching the service in June as a new source of revenue.
Social media companies including Snap, Twitter, and Meta
Platforms, which all earn the majority of revenue from selling digital
advertising, are facing a weakening ad market due to record-high inflation
causing brands to reign in their marketing spending.
Snap's shares dropped 25 percent last month after
disappointing second quarter earnings, as it suffered from weaker advertising
demand than Wall Street had expected. Chief Executive Evan Spiegel said the
company would work to speed up revenue growth, in part through new sources of
revenue.
Snapchat , which costs $3.99 per month in the United States,
offers access to 11 exclusive features not yet available to general users. Four
new features announced Monday include new Snapchat app icon designs and the
ability for subscribers to have their messages be more visible to celebrities
on Snapchat. Subscribers can also use Snapchat on desktops.
The paid subscription feature is now expanding to more
countries including Saudi Arabia, India and Egypt, for a total of 25 markets,
Snap said.
Twitter, which is in a legal battle with billionaire Elon
Musk over his attempt to walk away from his $44-billion deal to buy the
company, also previously launched a $4.99 per month subscription product called Twitter
Blue. Facebook and Instagram do not offer paid subscriptions as of now.
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