By Niels Vestergaard & Mia Sønderskov
In recent years, we’ve seen more social media platforms jump on the subscription bandwagon. You may recall when Twitter introduced Twitter Blue, now X Premium, or when Meta launched Meta Verified for Instagram and Facebook. Back in the summer of 2022, Snap, the company behind Snapchat, entered the scene with Snapchat+.
Snapchat+ was launched at a time when social media platforms had been struggling to generate advertising revenue for an extended period. Snap, too, delivered disappointing results due to declining demand for ads. This raises the question: is Snapchat+ primarily a product designed to please investors? It wouldn’t be the first time a company has turned to subscriptions as a way to generate recurring revenue without fully considering its customers. For instance, my colleague Niels previously wrote about how Mercedes and BMW faced backlash after introducing subscriptions for features like faster acceleration and heated seats – functionalities already built into the cars but locked behind an ongoing fee.
Regardless of its initial motivation, Snap recently released its Q2 report for the year, announcing it now has 11 million subscribers—up from 4 million at the end of June last year. Unlike X and Meta, Snap has been relatively successful at converting free users into paying subscribers. That sounds promising, but the real question remains: can they retain them?
What Does Snapchat+ Offer?
For 35 DKK per month, Snapchat+ provides access to a range of exclusive features, as well as early access to new functions before they’re made available to free users. Some of these features expand the app’s functionality, such as the ability to replay snaps twice, see if your stories are rewatched, view additional information about your friends, or send snaps lasting less than one second. Subscribers also get one free “Snapstreak” recovery per month.
Many of the exclusive features focus on personalizing the app. For instance, Snapchat+ allows you to choose custom backgrounds and app icons or design a small house on your Snap Map. Beyond personalization, Snap has also gone all-in on AI, which is particularly beneficial for Snapchat+ subscribers. Paying users often get to test new features first. Before Snapchat’s chatbot, My AI, was rolled out to all users in spring 2023, subscribers had exclusive access. Now, Snapchat+ members can explore additional AI-driven features, such as generating images from prompts or transforming existing photos.
Do You Know Anyone Who Subscribes to Snapchat+?
If all of this sounds unfamiliar to you, don’t worry – you’re not alone. As part of my research for this article, I tried to find someone in my network who subscribes to Snapchat+ to understand why they chose to pay for what is otherwise a free app. It’s been years since I last used Snapchat myself, so I admit I struggle to see the value in these features. However, my search was fruitless – I couldn’t find a single paying subscriber among my friends. So, who exactly is Snapchat+ for?
One specific feature might shed some light on why some users stick with their subscriptions longer. Snapchat+ includes the ability to boost stories for those sharing content with Snapchat’s wider network. This could make the subscription more relevant for users who want to reach a broader audience – particularly Gen Z users dreaming of becoming influencers.
Here, Snapchat+ aligns with X and Meta. Their subscriptions also target those looking to amplify their reach. And this plays to the strengths of Silicon Valley companies – selling exposure for cash has been their model from the beginning, long before subscriptions entered the picture.
Can They Sustain a Subscriber Base With This Value Proposition?
At Subscrybe, we’re somewhat critical of Snapchat’s value proposition, as it doesn’t seem to meet the requirements for fostering long-term relationships with members. While it’s filled with fun features and small “gimmicks,” it’s far from guaranteed that Snapchat will succeed in retaining its many new subscribers over time.
We focus on the factors that drive loyalty and member behavior—what is often called “The Forever Promise.” This is the cornerstone of subscription success: delivering ongoing value to your members—forever.
And this is where Snapchat+ seems to fall short. There’s little in its value proposition to support long-term retention. The closest it comes is the ability to restore “streaks” if users miss a day of snapping. But this artificially created need likely has an expiration date.
Snapchat is still primarily used by children and young people who might see value in paying for the subscription. While the growth rate is impressive, I suspect many of these subscribers will churn relatively quickly. Whether Snapchat can maintain its impressive growth rate remains to be seen—but I doubt it.
Acquisition is easy, however, retention is hard
This brings us to a key lesson for businesses venturing into subscription models. Acquiring subscribers is relatively easy, often achieved through free trials or enticing introductory offers. But for subscription businesses, acquisition is rarely the main challenge—at least not if you can retain your customers in the long run.
So, let’s put things into perspective. Snapchat’s 11 million subscribers come from a user base of over 800 million, resulting in a conversion rate of just 1.5%. It doesn’t take a marketing genius to achieve that. The real challenge for Snapchat starts now.
