Snap Bets on Creator Subscriptions as Ad Growth Stalls

If David Dobrik asked you to pay $19.99 per month for his exclusive Snapchat content, would you subscribe?

Snap is betting millions of fans will say yes. Starting Monday, the company begins testing "Creator Subscriptions," allowing creators to charge monthly fees ranging from $4.99 to $19.99 for exclusive content, subscriber-only Stories, and direct access.

The move signals Snap's urgent need to diversify beyond advertising as user growth stalls and competition intensifies.

The Numbers Behind Snap's Pivot

Snap's user growth story is losing steam. Daily active users dropped to 474 million last quarter—down 3 million from the previous period. It's the kind of decline that makes investors nervous and forces companies to find new revenue streams fast.

CEO Evan Spiegel didn't mince words: "Growth in subscribers will be a critical input metric to track our progress." Translation: we need predictable revenue that doesn't depend on fickle advertisers.

The company's existing subscription services—Snapchat+ and Memories Storage Plans—grew 71% year-over-year to 24 million users. But that's still just 5% of Snap's total user base, leaving plenty of room for growth.

Late to the Party, Light on Revenue Share

Snap faces a crowded field. Patreon, Substack, and OnlyFans built entire businesses around creator subscriptions. YouTube has offered Channel Memberships since 2018, giving creators 70% of revenue. Meta currently lets creators keep 100% of subscription revenue after fees.

Snap's offer? Just 60% after platform fees.

"We have a built-in distribution engine where so many creators are building fandoms," argues Jim Shepherd, Snap's head of content partnerships. The company is banking on its Spotlight feature—which surfaces short-form videos—to help creators find new audiences.

But discovery means little if creators can earn more elsewhere.

The Creator Dilemma

For creators, subscriptions represent both opportunity and pressure. Monthly recurring revenue beats the unpredictability of ad-based earnings, but subscribers expect value. Exclusive photos, behind-the-scenes videos, personalized replies—the content demands never stop.

Snap's initial cohort includes 15 creators like David Dobrik, Catherine Paiz, and Harry Jowsey. The company plans to expand to roughly 25 creators during the early test phase, with rollouts planned for Canada, the UK, and France.

Notably absent: Android users. The feature launches exclusively on iOS, with no timeline for Android availability—a curious limitation given Android's global market share.

The Bigger Picture

Snap's subscription push reflects a broader shift in the creator economy. As traditional advertising faces headwinds from privacy regulations and economic uncertainty, platforms are pushing direct monetization. But this model has winners and losers.

Top creators with dedicated fanbases will thrive. Mid-tier creators might struggle to justify subscription costs. And fans face an increasingly expensive proposition: Netflix, Spotify, YouTube Premium, and now individual creator subscriptions.