Messaging app Snapchat has a valuation in the range of $16 billion to $19 billion. How can anyone justify such a figure? In 2014, the app brought in $3 million in revenue and for the year, it was $128 million in the red. An update to Snapchat that is rolling out today, is bringing with it a new source of revenue for the company, along with new features for selfie snapping Snapchat subscribers.
If you're familiar with Snapchat, you know that once you open a message, you have ten seconds to view it before it disappears. And while Snapchat members have been allowed to replay one message a day since 2013, the new update allows subscribers to buy three replays for 99 cents. There is still a caveat. Even after laying out 99 cents for the three replays, each message can be replayed just once before it is gone forever.
The update to Snapchat also includes a new feature called Lenses. This includes various effects and filters that can enhance boring selfies and turn them into works of art. To activate Lenses, while using your camera to take a selfie, long-press your face on the display. Multiple versions of the selfie will be snapped, with you deciding which one to send.
Will Snapchat be able to turn Replay into a solid revenue stream? If so, the valuation of the app might continue moving skyward.
We’re thrilled to announce a whole new way to express yourself on Snapchat. When you’re using the camera to take a selfie, just press and hold on your face to activate Lenses. You can play with Lenses before taking a Snap — just select one from the row at the bottom and follow the on-screen instructions!
We introduced Replay in Additional Services almost two years ago, and we’ve used it to relive those amazing moments (or the ones we weren’t paying attention to…) just one more time before they disappear. We’ve provided one Replay per Snapchatter per day, sometimes frustrating the millions of Snapchatters who receive many daily Snaps deserving of a Replay. But then we realized — a Replay is like a compliment! So why stop at just one?
Today, U.S. Snapchatters can purchase extra Replays, starting at 3 for $0.99. You can use a Replay on any Snap you receive, but you can only Replay any Snap once. They’re a little pricey — but time is money! ;)
You’ll also find some fun surprises in this update, including Trophies (tucked above the camera).
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