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Snapchat’s New Source of Revenue: $0.99 to Replay 3 Lost Messages

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$0.99 for 3 messages

Snapchat, a messaging service that offers to replay messages that are lost or disappear, will now charge users to replay their favorite messages. In a recent update, the company said it will allow users to replay three messages for $0.99. This could be a new source of income for the young company that has more than 100 million users log on to Snapchat on a daily basis.

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Young Millennials account for 45% of Snapchat users

Young Millennials, or people between the ages of 18 and 24, continue to love Snapchat. eMarketer, citing an April 8 comScore Media Merix report, said 45% of young Millennials use Snapchat in the United States. Comparatively, young Millennials account for only 28% of Yahoo!’s (YHOO) Tumblr and Twitter’s (TWTR) Vine application users.

The above graph shows Instagram, Twitter, Google+ (GOOG) (GOOGL), and Facebook (FB) as the other platforms favored by young Millennials, but to a lesser extent than Snapchat.

Snapchat recently fetched a valuation of $15 billion

Earlier this year in March, Snapchat was valued at $15 billion in a transaction planned by Alibaba (BABA), according to a Bloomberg report citing people familiar with the matter. The report mentions that Alibaba plans to invest $200 million in Snapchat.

This valuation makes Snapchat the third-highest-valued startup behind only taxi-booking app (application) Uber Technologies and Chinese (FXI) smartphone company Xiaomi. This information came from the same Bloomberg report, citing research firm CB Insights.

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