Some sections of Reddit (subreddits) may become paid as the platform seeks to create new revenue streams, CEO Steve Huffman said during a call with investors after the release of its quarterly financial results. In the lead-up to and aftermath of its initial public offering (IPO), Reddit has a new major goal: to increase the platform’s revenue.
Partnerships and API Access
The company took its first major step in this direction more than a year ago, when it began charging for API access, which led to the closure of a popular third-party client, Apollo. Community users protested, which the platform’s administration had to suppress. The company subsequently entered into agreements with Google and OpenAI to provide them with paid access to content and access to advanced AI models, notes NIXSolutions.
Paid Subreddit
Features Mr. Huffman also said that the company may begin experimenting with paid subreddits as part of a program to monetize new features. “I think the existing altruistic, free version will continue to exist and grow and thrive as it has before. But now we’re opening the door to new use cases, new types of subreddits that you can create that have exclusive content or closed sections and things like that,” Huffman said.
We’ll keep you updated on the platform’s evolving monetization strategy and how it may impact the Reddit community.