According to Snap Inc., there are currently 7 million users of its Snapchat+ service, which grants early or exclusive access to features on the social media app, such as tools for artificial intelligence.
This represents an increase from the 5 million users of the July 2022-launched service in September.
According to the company, Snap hopes to reach 10 million users in the “medium term.”
Through the service, Snap has been able to test new features ahead of time and make improvements based on feedback from users.
For example, the company first made its AI chatbot available to those premium customers.
It’s a component of a larger initiative to generate fresh revenue streams in the face of a decline in ad sales revenue growth.
At a time when Snap has scaled back on the majority of projects that don’t generate revenue for the company, the money from subscribers also helps to offset the cost of developing experimental technologies.
Most recently, Snap enabled its subscribers to use its AI tool to create images based on text prompts to share with friends, enlarge real pictures by incorporating AI-assumed content, and group friends in imaginary environments.
In the majority of its markets, the service is priced at $3.99 per month by the company. [Editor’s note: The monthly cost is R9.99 in South Africa.]
According to calculations by Bloomberg, if there were 7 million users, that would generate over $330 million annually.
For 2023, analysts project total annual revenue of $4.6 billion.
The company’s primary strategy for making money other than advertising is Snapchat+.
It closed that business unit, known as ARES, earlier this year and gave up on trying to sell retailers augmented reality technology for trying on clothes.