The news: Snap will start testing paid creator subscriptions next week to diversify revenues beyond advertising. The move to paid subscriptions comes as user growth softens and competition for creator-driven audience loyalty intensifies.
The test will begin with a small cohort of US creators, letting fans pay $4.99 to $19.99 monthly for exclusive content, private Stories, and prioritized interactions, per CNBC.
- Snap is seeding adoption with 15 high-visibility creators including vlogger David Dobrik and actress Skai Jackson. It plans to expand tests across Canada, the UK, and France but only on iOS devices for now.
- Creators can determine monthly prices for subscriptions and will receive about 60% of revenues after platform fees.
For marketers, this reflects a broader platform reality: Social apps are evolving into hybrid media businesses that blend ads, commerce, and fan monetization. Recurring revenues and tighter creator-fan relationships are becoming strategic priorities to offset ad losses.
The bigger picture: Platforms need premium content as they lean into entertainment and as social media continues to function more like TV.
We forecast Snapchat’s US ad revenues will soften this year with only 1.9% YoY growth. That alone is reason enough to push into other revenue streams, but there are other reasons:
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User numbers have dropped. Snap has 474 million daily active users (DAUs), per its recent earnings report, a quarter-over-quarter decrease of 3 million, reinforcing the need for new revenues and retention levers.
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Its existing paid offerings show traction. Snapchat+ and storage plans reached 24 million subscribers in Q4, up 71% YoY.
The creator subscription pivot mirrors a wider industry migration toward predictable income streams seen across Patreon, Substack, YouTube, and Meta.
Implications for brands: Creator subscriptions reshape influence economics. Smaller, paying communities often deliver stronger loyalty, richer data, and higher conversion intent than mass ad audiences.
Brands should identify subscription-led creators early, prioritize partnerships tied to premium content, and explore co-created membership perks. Dividing budgets between ads and subscriptions could sharpen the picture of what strategy works best.
With the social playbook tilting from ad-only to mixed revenue ecosystems, marketers who align with creator communities can capture deeper engagement and first-party insights.