More than 3 million users are now using the $3.99-per-month Snapchat+ subscription service that launched last June. The premium offering got a boost when the company added early access to its AI chatbot, called My AI. Snap will soon make My AI available free to Snapchat’s 750 million monthly users, the company announced Wednesday at its annual partner summit in Santa Monica, California. Snap CEO Evan Spiegel told attendees the company is targeting 10 million users as a “medium-term goal” for Snapchat+, which in addition to the U.S. is available in the UK, Germany and United Arab Emirates.

While the $150 million or so Snapchat+ subscription revenue adds to the company coffers is a small portion of the $4.6 billion in revenue the company reported last year, Snap is succeeding in something that has eluded larger competitors — getting users who have been enjoying the platform for free to start paying.

“At Twitter, owner Elon Musk has struggled to attract subscribers to the company’s Blue service,” reports Bloomberg. “Meta Platforms Inc., meanwhile, began testing a subscription bundle on Instagram and Facebook in February and has yet to disclose paid user figures.”

As ad revenue continues its slump, subscription dollars are getting more emphasis industrywide. Spiegel acknowledged that My AI can potentially improve Snap’s advertising business by providing data that can be used for ad targeting, “hinting at possible developments in the near future,” reports The Verge.

Spiegel says more than 2 million My AI chats are taking place every day. Snap is using OpenAI’s artificial intelligence technology to power My AI, which its users will soon be able to feed images to generate responses.

The company is also rolling out new augmented reality lenses powered by artificial intelligence, starting with a “Cosmic Lens” that “turns you and your surroundings into an immersive, animated sci-fi scene,” writes TechCrunch, adding that “Snapchat isn’t the only popular social media platform to use AI to enhance its AR offerings, as TikTok recently stunned viewers with its hyper-realistic AI-powered ‘Bold Glamour’ filter.”

Like its competitors, Snap has coped with changing market conditions by trimming staff and refocusing development priorities. As part of its plans to build-out Snapchat+, the company wants to help creators monetize on the app. Users over 18 can now post Stories on Snapchat, designed to help accumulate followers. To make the platform more attractive for creators, Snap says it will give high-performing creators a cut of revenue for ads that run between Stories posts.

Snap’s diversification includes Live Nation adding the social platform’s AR features to 16 new music festivals. “These features include custom AR lenses, partnerships with artists for unique experiences and using AR with 3D Maps of the venue to guide users to different stages,” per TechCrunch.

Related:
Snap Shows Off New Snapchat AR Experiences, VentureBeat, 4/19/23
Snapchat Is Expanding Its Revenue Sharing Program to Entice Creators, Engadget, 4/19/23