Snap tests paid Creator Subscriptions ($4.99–$19.99); creators keep ~60% to diversify revenue

Snap launches paid Creator Subscriptions to build recurring revenue

Snap Inc. is rolling out a paid Creator Subscriptions feature as it tests a new way to diversify revenue beyond advertising, the company tells CNBC. The Los Angeles-based social media firm begins testing on Monday with a small cohort of Snapchat creators who can set monthly prices between $4.99 and $19.99 for exclusive content. Subscribers gain access to direct photos or videos, a subscriber-only Story and the ability to send text replies that creators can pin to the top of a public Story.

The tool couples those product features with creator performance data that Snap says will guide pricing decisions, and the company says creators will retain roughly 60% of subscription revenue after platform fees. Snap describes the initiative as rooted in “real relationships,” with its head of content partnerships, Jim Shepherd, saying the system aims to provide creators predictable, recurring income from their most engaged fans. The company frames the rollout as a measured test to learn pricing and engagement dynamics before wider scaling.

Snap positions Creator Subscriptions as an extension of its existing paid offerings, which include Snapchat+ and Memories Storage Plans, and says subscriptions are a strategic priority to temper reliance on ad sales. Executives are testing features to maximize creator retention and fan conversion while gathering data on what subscription tiers and content types stick with Snapchat’s audience.

Subscriptions seen as hedge against slowing user growth

The product launch comes as Snap’s user growth moderates: the company reports 474 million daily active users, down 3 million from the prior quarter, and CEO Evan Spiegel warns that growth in subscribers will be “a critical input metric” going forward. Snap’s subscription products grow rapidly — Snapchat+ and storage plans rise about 71% year over year to 24 million users — underscoring the company’s drive to make revenue more predictable.

Platform competition raises pricing and revenue-share benchmarks

Snap enters an increasingly crowded direct-to-fan market that includes Patreon, Substack and OnlyFans, while major platforms already offer in-app subscriptions. YouTube’s Channel Memberships pay creators about 70% of membership revenue after taxes and fees, with transaction costs covered by Google, and Meta currently allows creators to keep 100% after fees, according to company sites — setting competitive benchmarks Snap faces as it scales Creator Subscriptions.