Snap Inc (SNAP  ) has attracted more than 5 million subscribers to its paid service, Snapchat+, which offers users early access to premium features, including an AI-powered selfie generator, for $3.99 per month.

This strategic shift toward monetization has proven effective, with subscription numbers surging from 3 million in April.

Snapchat+ has introduced a range of exclusive features for its subscribers, enhancing the overall user experience, including custom wallpapers for chats, the ability to pin conversations for easy access, early access to Snap's AI chatbot, and the AI selfie generator.

Jack Brody, Snap's VP of Product, noted that users are willing to pay for early access to these experimental features, further fueling the subscription's success, Bloomberg reports

With approximately 5 million subscribers paying about $4 monthly, Snapchat+ could generate an estimated $240 million annually.

While this revenue is a small fraction of Snap's $4.6 billion total revenue the previous year, it helps offset investments in AI-based tools and other innovative features.

Snap launched Snapchat+ in June 2022 to respond to the social media industry's declining ad revenue. CEO Evan Spiegel aims to reach 10 million users as a "medium-term goal."

Snap's successful subscription offering stands out in a landscape where social media companies explore various paid models, such as Meta Platforms Inc's (META  ) Meta Verified and Elon Musk's potential universal membership fee for X.

In July, Snap reported second-quarter revenue of $1.07 billion, down 4% year-over-year, above the consensus of $1.05 billion.

The company reported a loss of two cents per share, which beat the consensus loss of four cents per share.

Price Action: SNAP shares traded lower by 3.65% at $8.70 on the last check Thursday.