Snap Inc, the parent company of Snapchat, an American multimedia instant messaging app, announced on Monday that it has reached 1 million premium subscriptions after launching the service in June.
According to a report, Social media companies including Snap, Twitter, and Meta Platforms, which all earn the majority of revenue from selling digital advertising, are facing a weakening ad market due to record-high inflation causing brands to reign in their marketing spending.
Snap’s shares dropped 25 percent last month after disappointing second-quarter earnings, as it suffered from weaker advertising demand.
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Evan Spiegel, Chief Executive of Snap said the company would work to speed up revenue growth, in part through new sources of revenue.
Additionally, he stated that Snapchat offers access to 11 exclusive features that are currently unavailable to regular users for $3.99 per month in the United States. Also four new features, including new Snapchat app icon designs and the ability for subscribers to have their messages be more visible to celebrities on Snapchat, as well as the ability for subscribers to use Snapchat on desktops.
The paid subscription feature is now expanding to more countries including Saudi Arabia, India, and Egypt, for a total of 25 markets, Spiegel said.
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