Snapchat+ Surges – Unveiling the Explosive Growth of Snapchat’s Premium Subscription
The premium subscription of Snapchat is having some staggering growth and the latest data is showing that this trend is not slowing down at all. The subscription service known as Snapchat+ has achieved the highest ever in-app revenue for November 2023, crossing $20 million in net revenue after factoring in app store fees. This awesome milestone has shown the willingness of many youngsters to pay for the benefits provided by Snapchat+ which includes some improved story tools, ability to pin close friend, change the icon of the app and gain early and exclusive access to the new features like advanced AI capabilities.
Unlike its competitors, Snapchat goes beyond X Premium, formerly known as Twitter Blue. X Premium posted the highest monthly app revenue in November with $6.2 million in customer spending, but still trails Snapchat by more than two-thirds. The data behind Snapchat’s success comes from app intelligence provider Apptopia. The news comes after Snap announced in September that the number of subscribers to its subscription service had surpassed 5 million, up from 4 million in late June and 3 million in mid-April. Demand for Snapchat continues to grow thanks to the latest AI products, such as the My AI chatbot, and early access features, including expanded access to a generative AI selfie feature called Dreams. In Snap’s third-quarter earnings call, it said its My AI chatbot delivered more than 20 billion messages.
Snapchat+ has been adding the subscribers on constant basis since its initiation a year ago. Apptopia has noted that the subscriptions brought more than $31 million in consumer spending before app store commissions, reflecting 23% month-over-month increase as compared to previous month i.e. October 2023. It is not the largest %age increase but it is the 2nd largest absolute revenue growth in one month. The main contributors to the subscription’s consumer spending are from Australia, Canada, France, USA and UK. In November, the US led with the net revenue growing from $1.3 million to $1.8 million. Other top contributors are UK contributing $1.6 million, France $1.2 million, Australia $1 million and Canada $960,000 net. In simple words, these top four countries has generated more than $1 million in revenue for Snapchat+.
Interestingly, Snapchat is going to expand into some of the most unexpected places. For example, Saudi Arabia has been emerged as the seventh largest market in terms of consumer spending, which is quite unusual. However, the data reported may not reflect Snapchat’s overall financial condition. The company allows US users to purchase Snapchat subscriptions using Amazon gift cards, and because those transactions happen outside of the App Store, third-party analytics tools like Apptopia can’t track that spending. Therefore, Snapchat’s actual revenue is likely higher than Apptopia’s estimates.
