TLDRs;
- Snapchat+ hits 25M users, fueling Snap’s $1B annual revenue run rate.
- New paid tiers, including Lens+ and Platinum, diversify Snap’s income streams.
- Creator subscriptions launch in alpha, allowing fans exclusive content access.
- Snap continues innovating with subscriber-focused features amid social media competition.
Snap Inc. (SNAP) saw its stock climb on Wednesday following the announcement that its direct revenue business has reached a $1 billion annualized revenue run rate.
This milestone comes as Snapchat+ surpasses 25 million subscribers, highlighting the social media company’s growing success with paid subscription offerings. Annualized revenue reflects the current revenue pace projected over a full year, demonstrating the rapid impact of Snapchat’s diversified subscription strategy.
Launched in 2022, Snapchat+ provides subscribers with early access to new features, exclusive tools, and other perks for $3.99 per month. Since its debut, the platform has consistently added new offerings, driving steady growth in both users and revenue. Snap described Snapchat+ as “one of the fastest-growing consumer subscription services globally,” noting strong quarter-over-quarter subscriber gains.
Expansion Through Paid Tiers
To bolster its revenue streams, Snap introduced additional subscription tiers over the past year. Lens+, launched last June, offers exclusive augmented reality lenses and experiences alongside standard Snapchat+ benefits for $8.99 per month. Early in 2025, the company rolled out Snapchat+ Platinum at $15.99 per month, an ad-free subscription tier that also includes expanded storage capabilities.
Snap also introduced a paid storage plan in September, capping free Memories storage and offering subscribers up to 250GB with Snapchat+ or 5TB with Snapchat Platinum. These moves signal Snap’s intention to create a more robust and diversified subscription ecosystem, enhancing both user engagement and revenue potential.
Creator Subscriptions Open New Revenue Channels
Moving beyond traditional subscription offerings, Snap unveiled creator subscriptions in alpha in the U.S., allowing select influencers to monetize their audiences directly. Creators such as Jeremiah Brown, Harry Jowsey, and Skai Jackson can now set custom monthly subscription prices, granting fans exclusive content, priority replies, and an ad-free experience for that creator’s Stories.
This initiative positions Snap at the forefront of social media monetization trends, providing both creators and the company with new opportunities to generate revenue outside traditional advertising. It also reflects growing competition in the space, with rival Meta testing similar subscription features for Instagram, Facebook, and WhatsApp.
Focus on Community and Customization
Looking ahead, Snap plans to continue enhancing Snapchat+ with community-driven and customizable features. The company emphasizes that its subscription products are designed to foster engagement and give users more control over their experience. By creating a suite of subscription options, Snap aims to complement its core advertising business while establishing a more predictable, recurring revenue model.
Analysts suggest that Snap’s growth in the subscription segment could redefine revenue strategies for social media platforms. With Snapchat+ demonstrating sustained adoption and paid tiers gaining traction, Snap’s stock movement reflects investor confidence in the company’s ability to expand beyond advertising-dependent revenue streams.
As the social media landscape evolves, Snap’s subscription strategy may set the standard for other platforms seeking to balance ads with paid features. The $1 billion ARR milestone underscores the market potential for monetized social experiences, highlighting Snap’s growing role as a pioneer in social media subscriptions.
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