Snap’s direct revenue business has reached a $1 billion annualized revenue run rate, the company announced on Wednesday. Annualized revenue refers to a business’s current revenue rate projected over a full year. The social media giant says the milestone is driven by its Snapchat+ offering, which has now surpassed 25 million subscribers. Launched in 2022, Snapchat+ gives subscribers access to exclusive and pre-release features for $3.99 per month. Following a successful launch, Snap introduced additiona ...

Core Insights - Snap's direct revenue business has achieved a $1 billion annualized revenue run rate, primarily driven by the Snapchat+ subscription service, which has surpassed 25 million subscribers [1] Group 1: Snapchat+ Subscription Service - Launched in 2022, Snapchat+ offers exclusive features for $3.99 per month and has seen significant growth, becoming one of the fastest-growing consumer subscription services globally [2][3] - Additional paid tiers have been introduced, including Lens+ at $8.99 per month, which provides exclusive Lenses and AR experiences [3] - A new ad-free subscription tier called Platinum was launched for $15.99 per month, alongside a paid storage plan for Memories at $1.99 per month, with varying storage capacities for different subscription levels [4] Group 2: Future Developments - The company is launching creator subscriptions in alpha, allowing users to subscribe to individual creators who can set their own prices for exclusive content [5] - Snap plans to continue expanding Snapchat+ with a focus on customization and community-driven features, indicating a strong market for social media subscriptions [6] - Competitors like Meta are also exploring subscription models for their platforms, suggesting a growing trend in the industry [6]