Snapchat has become one of the most popular social media platforms, especially among teenagers and young adults. The app allows users to send photo and video messages that disappear after being viewed. While the basic Snapchat app is free, the company offers additional premium features and services through a Snapchat+ subscription plan that costs $3.99 per month.
The Origins of Snapchat
Snapchat was created in 2011 by Evan Spiegel, Reggie Brown, and Bobby Murphy, who were students at Stanford University at the time. The original premise of Snapchat was to allow users to send photo messages that would disappear after being viewed once. This ephemeral nature of the content was meant to encourage a more authentic and intimate experience.
After launching in July 2011, Snapchat quickly gained popularity among young smartphone users. By the end of 2012, Snapchat was processing over 20 million photos per day. As the app continued to grow, Spiegel focused on keeping the interface simple and maintaining the ephemeral experience that set Snapchat apart from other social platforms.
The Introduction of Premium Features
For the first several years, Snapchat remained an entirely free app and did not have any advertising. However, over time Snapchat began experimenting with additional premium features and revenue streams.
Some key milestones:
- October 2013 – Snapchat introduces Snapchat Stories, which allows users to post content that remains visible for 24 hours.
- April 2014 – Snapchat launches Chat 2.0, an improved messaging system.
- November 2014 – Snapchat begins “Snapcash” partnerships with payment providers Square and Stripe to allow users to exchange money through chat.
- September 2015 – Snapchat introduces “Discover”, a section for media partners to post video and article content.
While these new features expanded Snapchat’s offerings, the core app remained free. But that finally changed in June 2018.
The Launch of Snapchat+
In June 2018, Snapchat launched its first subscription service called Snapchat+. For $3.99 per month, Snapchat+ provides users with access to exclusive and experimental premium features.
Some of the key perks of Snapchat+ include:
- Seeing who has rewatched your Story
- Pinning a friend as a “#1 BFF” for a more customized feed
- Custom Snapchat icons
- Displaying how many friends have viewed a Story
- Insights into profile visits and content opens
Additionally, Snapchat uses the subscription plan to test out new experimental features before rolling them out to all users. These experimental features give subscribers early access to new capabilities.
While Snapchat still retains the majority of its features for free users, Snapchat+ represents the company’s effort to generate revenue from its most engaged audiences. The exclusive perks give devoted users additional capabilities to enhance their Snapchat experience.
Why $3.99 per Month?
Snapchat clearly determined that $3.99 per month was the right price point for Snapchat+. But why exactly this amount versus a higher or lower fee? There are a few likely factors that contributed to this pricing decision.
Competitive Benchmarking
Before setting the price, Snapchat likely looked carefully at what competitors were charging for premium offerings. Some relevant benchmark prices include:
| Platform | Premium Service | Price |
|---|---|---|
| Twitter Blue | $2.99/month | |
| Discord | Discord Nitro | $9.99/month |
| Telegram | Telegram Premium | $4.99/month |
These benchmark prices likely shaped Snapchat’s decision to price Snapchat+ comparably at $3.99 per month. While slightly higher than Twitter Blue, Snapchat+ is significantly lower than Discord’s $9.99 monthly fee.
Willingness to Pay
Snapchat also likely conducted research and surveys to gauge users’ willingness to pay for a premium offering. The results of this research likely indicated that $3.99 per month falls below the threshold at which price becomes a barrier for most users.
Notably, $3.99 is an affordable amount for younger demographics with lower disposable incomes. As a platform most popular with teens and young adults, Snapchat wanted to price Snapchat+ appropriately for its core user base.
Revenue and Profit Goals
The $3.99 per month price point balanced Snapchat’s business objectives for subscription revenue versus market adoption. If Snapchat+ is priced too high, they risk limiting uptake and total subscribers. But an excessively low price leaves revenue opportunity on the table.
$3.99 per month appears to hit the sweet spot – enticing enough users to subscribe and generating meaningful incremental revenue, without being so expensive as to deter signups.
How Many Users Subscribe to Snapchat+?
Snapchat has not publicly disclosed exactly how many users are subscribed to Snapchat+ specifically. However, we can infer that uptake has been fairly strong based on a few indicators.
Firstly, Snapchat reported in October 2022 that they now have over 1.5 million total paying subscribers across all their current paid products. While this includes some other offerings like Story replies, the bulk are likely Snapchat+ users.
Secondly, Snapchat highlighted that their average revenue per user is increasing driven by uptake of paid products. This also indicates growing adoption of Snapchat+ subscriptions.
Lastly, Snapchat has steadily expanded the features included in Snapchat+ over time. The fact that they are investing in new capabilities tailored for subscribers signals that Snapchat+ has reached a critical mass that justifies ongoing development.
Who is Using Snapchat+?
Based on the premium features, Snapchat+ seems to cater to two distinct segments of highly engaged Snapchat users:
- Social media influencers – Features like viewer counts and story rewatches provide valuable analytics for creators and influencers using Snapchat to build an audience.
- Power users – Casual users may not get value worth $3.99/month. But loyal users who constantly use Snapchat likely find the additional features worthwhile.
Both of these segments likely represent a small subset of Snapchat’s overall user base, which explains why Snapchat+ subscribers remain under 2% of total users. But these premium power users deliver outsized revenue through their subscriber fees.
Is Snapchat+ Worth the $3.99 Monthly Fee?
Whether Snapchat+ is “worth it” depends entirely on the individual user and how much incremental value they derive from the exclusive features.
For many casual Snapchat users, the free core app likely provides their desired experience and capabilities. These users may not get $3.99 per month of extra utility from Snapchat+, making the paid subscription not worth the cost.
But for the power users described above, Snapchat+ could very well provide $3.99 of monthly value. For an avid Snapchat user or influencer who utilizes the exclusive features daily, the small monthly fee is likely money well spent.
Some specific scenarios where Snapchat+ may provide value worth the price include:
- Content creators who heavily leverage analytics like view counts to refine their content and strategy.
- Friends who want to designate a “#1 BFF” and customize their feed experience.
- Public figures who want to better understand their Snapchat audience.
- Teen super users who simply enjoy having access to new Snapchat features first.
While Snapchat itself provides value, for the right type of devout Snapchat user, Snapchat+ takes the experience to the next level for an affordable $3.99 per month.
The Future of Snapchat+
The launch of Snapchat+ represents Snapchat’s first real step into building a subscription business model. And this move mirrors a broader industry shift towards subscriptions and premium tiers among social media platforms.
While Snapchat still faces some financial and competitive headwinds, Snapchat+ gives the company a way to tap into revenue from its most loyal users while enhancing the product experience.
Looking ahead, we can expect Snapchat to continue expanding Snapchat+ features to deliver more value to subscribers. Additional capabilities like advanced analytics, further profile customization, exclusive AR lenses and filters could all be on the roadmap.
And if Snapchat+ continues to gain subscribers over time, it’s very possible Snapchat could introduce more premium tiers at higher price points for additional perks. However, the company will need to tread very carefully to avoid alienating its predominantly young user base or sparking a backlash.
Ultimately, though, Snapchat+ represents a savvy evolution of Snapchat’s business model for the modern era of social media. By complementing advertising revenue with recurring user subscriptions, Snapchat is positioning itself for sustainability – and $3.99 per month could add up to big money over time if Snapchat+ takes off.
Conclusion
Snapchat’s $3.99 per month premium subscription Snapchat+ provides an intriguing case study in social platforms adding paid tiers. Snapchat likely settled on $3.99 after researching benchmarks and user willingness to pay. The pricing unlocks incremental revenue from some of Snapchat’s most avid users without being so costly as to deter signups.
While casual users may not find Snapchat+ worthwhile, the exclusive perks offer clear value for influencers, power users, and anyone who loves being on the bleeding edge of new Snapchat features. And as subscriptions continue growing, Snapchat+ may evolve into multiple premium tiers at a mix of price points.
Regardless, Snapchat+ represents a logical extension of Snapchat’s capabilities and business model. For the right audience, $3.99 is a small price to pay for an enhanced Snapchat experience and the ability to support continued development of one of their favorite platforms.