Snap is accelerating its shift away from an ads-only revenue model.
The company revealed its direct-to-consumer subscription business has surpassed a $1 billion annualised revenue run rate, powered by more than 25 million paying Snapchatters globally.
This milestone marks a significant structural pivot for the platform. While it has historically relied on advertising, it is now building a parallel monetisation engine through subscriptions, including Snapchat+, Lens+, and Snapchat Platinum.
The company said its growing portfolio of paid products is reshaping how it monetises engagement. This allows users to support the platform directly while unlocking new features.
Snap builds a second revenue engine beyond ads
The $1 billion run rate signals that subscriptions are evolving from an experimental add-on into a material revenue stream. Digital platforms are increasingly diversifying their income sources as ad markets remain volatile.
“Today, we’re excited to share that our direct revenue category – the portfolio of products where Snapchatters support the platform directly – has exceeded a $1B annualized revenue run rate,” the company said.
The subscription push is anchored by Snapchat+, which launched in late 2022. It has quickly become one of the fastest-growing consumer subscription services globally.
What started as an early-access program for engaged Snapchatters has scaled into a meaningful business. It now represents a strong revenue stream alongside the ads business.
The shift reflects a broader trend across the digital ecosystem. Platforms from YouTube to TikTok are investing heavily in paid products and premium features to reduce reliance on advertising alone.
Why subscriptions resonate with Gen Z audiences
Snapchat’s subscription model is built around personalisation.
With more than 946 million monthly active users globally, Snap is positioning subscriptions as a natural extension of its messaging experience.
Features such as customised chat backgrounds and Bitmoji integrations are designed to deepen engagement.
“When you open a conversation with your spouse and see a photo of your children as the background, those moments add warmth and joy to everyday communication,” the company noted.
AI, creators and premium experiences drive the next phase
Snap is expanding its subscription offering with new paid tiers and AI-powered creative tools. This includes Lens+, which provides access to generative AI features.
The company is also introducing Creator Subscriptions.
This allows fans to pay creators directly for exclusive content and an ad-free experience. This creator monetisation push mirrors strategies from TikTok and YouTube, as platforms compete to attract talent and unlock new revenue.
Snap said its growing base of paying users will play a critical role in shaping the platform’s future.
For advertisers and agencies, the shift signals a more diversified Snap ecosystem. Monetisation now extends beyond advertising into subscriptions and AI-driven products, reshaping the commercial dynamics of an influential platform.