Snap’s subscription engine just crossed a major threshold. The company said its direct revenue business has reached a $1 billion annualized revenue run rate, propelled by more than 25 million users paying for Snapchat+. The milestone underscores how Snap is steadily converting engagement into recurring revenue, building a second growth pillar alongside its ads business.
Launched in 2022 as an early-access bundle for power users, Snapchat+ has evolved into a multi-tier portfolio that blends exclusive features, early releases, and quality-of-life upgrades. The company characterized the service as one of the fastest-growing consumer subscriptions globally, with subscriber gains every quarter.
What a $1B ARR Milestone Actually Signals for Snap
Annualized revenue run rate is a snapshot that extrapolates current revenue over 12 months. At $1B ARR, Snap’s direct revenue is tracking to roughly $83 million per month. Set against 25 million Snapchat+ subscribers, that implies a blended revenue per subscriber of about $3.30 per month—below the $3.99 headline price, which is consistent with a mix of geographies, promos, annual plans, and users on different tiers.
ARR is not the same as reported revenue, and it can fluctuate with churn, currency, and seasonal offers. But it’s a credible indicator that Snap’s non-advertising income is now material at scale, providing more predictable cash flows than the historically cyclical ad market.
Tiers Turn Perks Into Predictable Revenue
Snap has layered paid options to widen its funnel. The core Snapchat+ plan is priced at $3.99 per month, offering badges and early access to experimental features. Lens+, introduced last year at $8.99 per month, unlocks exclusive Lenses and premium AR effects on top of the base perks—leaning into a capability where Snap already leads the market.
Early in 2025, Snap added Platinum at $15.99 per month, an ad-free tier designed for users who want a cleaner experience without sacrificing features. The company also moved to monetize storage: it capped free Memories capacity, introduced a $1.99 paid storage plan, and bundled generous allotments into subscriptions—up to 250GB for Snapchat+ and 5TB for Platinum. That shift drew pushback from some longtime users, but it aligns cost with heavy usage and gives the subscription value proposition a concrete, utility-based benefit.
The mix of status (badges), utility (storage), and novelty (AR and early features) is classic subscription design. It broadens appeal beyond superfans and helps keep churn low by tying recurring benefits to daily behaviors like saving snaps and playing with Lenses.
Creator Subscriptions Enter the Mix on Snapchat
Snap is also testing creator subscriptions in alpha with a small group in the U.S., including Jeremiah Brown, Harry Jowsey, and Skai Jackson. Creators can set monthly prices and offer subscriber-only content, priority replies, and an ad-free experience for their Stories. This brings Snap into the patronage trend seen across social platforms, giving creators a more direct monetization channel while adding another stream to Snap’s direct revenue line.
If Snap gets the incentives right—balanced take rates, strong discovery, and clear perks—creator subscriptions can complement the broader Snapchat+ bundle rather than compete with it. For users, the proposition is simple: pay for the product features you want, and, optionally, pay for deeper access to the personalities you follow.
Why Subscriptions Matter for Social Platforms
Across social media, paid services are rising as privacy changes and measurement headwinds make ad-only models less predictable. Research from firms such as eMarketer and Deloitte has highlighted a broader industry pivot toward mixed revenue—ads for scale, subscriptions for stability. Meta Verified, X Premium, and Telegram Premium each reflect that shift, though traction has varied widely.
Snap’s differentiation is its AR ecosystem and youthful, highly engaged user base. By turning premium Lenses and storage—both inherently high-frequency features—into paid value, Snap is monetizing where it has a structural advantage. That approach also spreads risk: when ad demand softens, recurring direct revenue can help smooth the curve.
What to Watch Next as Snap Scales Direct Revenue
Snap says it will keep expanding Snapchat+ with a focus on customization and community-driven features. Expect more personalization controls, ongoing AR drops, and tighter integration between subscriptions and core messaging and Stories use cases. The company’s ability to pace meaningful feature releases will be key to keeping churn in check.
The balancing act is preserving a compelling free experience while reserving enough utility and delight for paying members. Regulatory scrutiny of subscription disclosures and cancellations remains another variable to manage. But for now, with 25 million subscribers and a $1B ARR pace, Snap has validated that social subscriptions can be more than a niche upsell—they can be a durable business line.
