Although you may have decided never to pay for social media, it is becoming increasingly difficult to avoid. Snapchat will be next to offer a paid subscription with a plan called Snapchat Plus. Will you agree to pay it? Or will you decide to skip it?
Snap spokeswoman Liz Markman announced that the company is in the testing phase of Snapchat Plus. “We’re doing early internal testing of Snapchat Plus, a new subscription service for Snapchatters. We’re excited about the opportunity to share exclusive, experimental, and pre-release features with our subscribers and learn more about the best way to serve our community,” she said.
App researcher Alessandro Paluzzi tweeted out some screenshots of one of Snapchat Plus’ perks: a badge that will appear in your profile.
This premium plan will be offered for around €4.59/month or €44.99/year (around $4.84/month or $48.50 per year).
In addition to the profile badge, the plan will also allow you to “pin” a friend who will be tagged “#1 BFF”. You’ll also be able to “see your orbit” with your BFF, see where your friends have been in the past 24 hours, and how many friends are watching your story twice or more. Changing the Snapchat icon will also be an option.
The question is whether current users would pay for these premium features in Snapchat Plus.
Put the blame on Apple
Snapchat Plus is not the first premium offer from a social network. Twitter started offering the Blue service last year, and Telegram is also considering a subscription plan.
Snapchat’s premium plan appears to be Snap’s way of coping with lost revenue after Apple began allowing users to opt out of seeing ads. This had a chilling effect on many people in the business.
Although Snap first broke the $1 billion mark last year and built both Snapchat and Spotlight, it also fell short of its $3 million goal in the third quarter.
“We tackled industry changes in how advertising is targeted, optimized and measured on iOS, which created a bigger impact on our business than expected,” said Jeremi Gorman, Chief Commercial Officer of Snap. She went on to say, “I think we prepared it as best we could.”
CEO Evan Spiegel said Snap’s advertising business model was “disrupted” by the changes and that Apple’s new advertising tools were “not evolving as expected”. Snap announced its own advertising tool last year, but that doesn’t seem like enough.
Just weeks before the Snapchat Plus announcement, Spiegel announced that hiring would be slowed, hiring just 500 more people next year, down from 2,000 hired over the past 12 months.
He wrote in a note to his employees“Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes , the impact of the war in Ukraine, etc.”
Spiegel added that he expects revenue to be lower than the amount Snap told investors would be the lowest they could expect for the second quarter. The admission caused Snap’s share price to plunge to a two-year low.
Although Meta hasn’t made any drastic changes to its business model, read how Facebook reacted to Apple’s ad tracking changes.
Image credit: Unsplash
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