Snap is rolling out a $3.99 month subscription plan for Snapchat that unlocks exclusive and pre-release features. It was called Snapchat The announcement after Snapchat gave a disappointing sales outlook for the current quarter when it reported first-quarter results in April. Snap CFO Derek Andersen said at the time that macroeconomic conditions such as supply chain disruptions, labor shortages and inflation are impacting advertising, Snap's main source of revenue.
Snapchat could help the company diversify its revenue sources, but Jacob Andreou, Snapchat's senior vice president of products, told The Verge that the company doesn't expect the plan to become a new revenue source. Shares of Snapchat went up about 1% on Wednesday morning.
The Plus plan includes pre-release, experimental and exclusive features, such as pinned your close friend as a BFF best friend forever and customizing the app's icon. The company said it was meant for the most passionate members of Snapchat users.
The subscription services were recently rolled out by other social media platforms. In the year 2021, Twitter announced the Blue subscription that offers ad-free access to other websites for $2.99 a month. Snapchat launches Wednesday in the United States, Canada, France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates.