Snapchat Bringing Paid Subscription Service? Here's What We Know

Snap Inc SNAP, which heavily relies on advertising revenue, is reportedly testing out a paid subscription service with many user perks for its instant messaging app and service.

What Happened: Snap is internally testing "Snapchat Plus," a paid subscription that will give users early access to new features and other abilities, the Verge reported, citing a statement from a company spokesperson. 

The company is also testing other features for the subscription service, as per the report, which cited screenshots and information shared by app researcher Alessandro Paluzzi.  

Paluzzi suggested the subscription service could allow pinning a friend as a No.1 Best Friend Forever (BFF), access to exclusive Snapchat icons, and displaying a badge in a user's profile, among several features.

One of the screenshots Paluzzi shared puts the subscription price at 4.59 euros ($4.83) per month. Six-month and 12-month subscriptions were priced at 24.99 euros and 45.99 euros, respectively.

Verge, however, said these amounts could be placeholder values.

Why It Matters: Snapchat is widely considered Gen Z's most preferred social media platform, but its parent firm recently flagged that it may not meet its second-quarter guidance due to current macroeconomic conditions. 

Price Action: Snap closed Thursday's session 7.42% lower at $12.22, according to Benzinga Pro data.