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Amidst all the action this week at AWE – including the revelation of consumer Specs launching next year – Snap announced Lens+. Modeled after Snapchat+, this creates a subscription service for Lenses. For $8.99, users get access to exclusive and early-release AR.
Snap is seeding these premium experiences with some first-party home-grown lenses, as well as lenses built by select creators. These will include some of its newer lens formats, including AI Video Lenses and Bitmoji Game Lenses. It will add a new Lens every week.
As for pricing, the $8.99 gets you all of the features of the $3.99 Snapchat+, along with the additional Lens perks. So the best way to think of this is as a new tier of Snapchat+, which sits somewhere between the base subscription and the $14.99 Platinum Snapchat+ tier.
As the program develops, Snap will bring in more creators to populate the premium Lens library. In doing so, creators can monetize their lenses by getting a cut of the proceeds. Snap hasn’t yet revealed the revenue-share specifics, but those details are likely coming soon.
Inelastic Initiative
Sticking with monetization dynamics, Snap+ essentially unlocks new AR revenue streams for both Snap and Lens creators. Snap so far only monetizes sponsored lenses and their amplification on its platform, while creators can be commissioned for paid lens work from brands.
With Snap+, both Snap and creators have another AR revenue source: end users. This is a first because Snapchat users previously got free access to all lenses. That plus Snap’s extensive lens library – given scaled creator work in Lens Studio – has led to 8 billion lens views per day.
Users will still get free access to most lenses, but Lens+ creates a premium tier that may attract power users. And if Snapchat+ traction is any indication, Snap could be tapping into the right wellspring. Snapchat+ has already reached 15 million users with a thoughtful feature mix.
To do this, Lens+ will have to find price inelasticity in the consumer AR market. Users have been conditioned to expect free AR experiences, so the question is if they’ll be attracted to the point of opening their wallets. The answer will be important for Snap and the entire AR sector.
Gravitational Pull
This experiment surprisingly hasn’t been done in the 10 years of the current era of AR. We often say that consumer AR usage is mostly brand-sponsored rather than user-purchased, with the exception of in-app-purchases in Pokémon Go. But those aren’t exactly AR purchases per se.
Altogether, it’s a big move. We’ll be watching closely to see if it has the gravitational pull to compel paid users, as well as new waves of financially-driven creators. If anyone can do it, it’s Snap. It could be an inflection point in consumer AR, and help lay tracks for next year’s Specs launch.
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