Snap Inc.
SNAP
recently announced about adding three new features to its paid subscription service Snapchat+, including new customization options.
Snapchat+ subscribers can make the look and feel of the application more personalized by customizing the camera capture button, application icons and more.
Snapchat+ subscribers can now change their chat wallpapers to standard backgrounds available in the app or to an image from their camera roll. Snapchat+ subscribers can also add custom backgrounds to chats with wallpapers created by the platform, which includes emojis and smiley faces.
The app, which costs $3.99 per month, lets users gift subscriptions to others through the new gifting feature. Users can send a 12-month Snapchat Plus subscription to a friend for $39.99.
In August, Snap had announced that its premium service Snapchat+ had reached 1 million subscribers and the platform had begun rolling out new features to allow users to customize their experience.
Feature Additions to Boost User Growth in Holiday Season
The company has been benefiting from growing demand for Snapchat’s new features and the popularity of its paid subscription service Snapchat+.
Snap is benefiting from improved user engagement. The Snapchat+ subscription service, with exclusive, experimental and pre-release features, reached more than 1.5 million paying subscribers in Q3 and is now offered in 170 plus countries.
Last month, Snap announced partnership with
Amazon
AMZN
Fashion partner to bring millions of Snapchatters new Virtual Try-On experiences, expanding Augmented Reality (AR) for both brands and customers. The new Snapchat try-on Lenses feature thousands of Amazon Fashion’s popular Virtual Try-On Eyewear products, enabling Amazon brands to leverage their Amazon AR assets and showcase styles in a fun, interactive experience to millions of Snapchatters.
In October, the network allowed users to set different intervals for Snapchat Stories to expire instead of 24 hours.
With the update, subscribers gained the ability to set Snaps on their Stories to expire after either one hour, six hours, 12 hours, 24 hours, two days, three days, or one week. It also gave subscribers the option to use different custom notification sounds.
Snap launched iOS 16 Lock Screen widgets and more for its iPhone users on Snapchat. One of the major changes with Apple’s iOS 16 launch is the option to personalize your Lock Screen with widgets.
Moreover, the company released new AR lenses at Electric Daisy Carnival, Las Vegas, NV as part of Snap’s
Live Nation Entertainment
LYV
partnership. Snapchat entered into a multi-year partnership with Live Nation to use AR experiences, which have been created with artists. The companies plan to collaborate with artists at various music festivals throughout the partnership.
This Zacks Rank #3 (Hold) company stated that it reaches more than 75% of 13 to 34-year-olds in over 20 countries, representing above 50% of global advertising spend. This makes Snap a larger platform than
Meta Platform
’s
META
Facebook and Instagram as well as Twitter. However, Snapchat is facing stiff competition from Meta Platform’s Instagram which has already announced the dual camera feature on its platform in the previous quarter. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
However, Snap is suffering from declining ad revenues as advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressure, and rising costs of capital. In many high-growth sectors, businesses are reassessing investment levels amid the rising cost of capital, which led to cutbacks in spending on advertising.
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