In a recent earnings call, Reddit CEO Steve Huffman suggested that the platform might introduce ‘exclusive content or private areas’ as part of a strategy to boost revenue following its March IPO.
Huffman discussed the potential for paywalled subreddits after being asked how Reddit could help creators earn revenue similarly to platforms like Twitch, Instagram, and YouTube.
“I believe the free, altruistic version of Reddit will continue to flourish as it has,” Huffman stated. “However, we are opening the door to new possibilities, including subreddits that could offer exclusive content or private spaces.”
This idea has already sparked backlash among some Reddit users who fear that the site is heading in a troubling direction and attempting to mimic platforms like OnlyFans, where users post adult content for paying subscribers.
“They’re clearly just throwing ideas at the wall to see what sticks in their never-ending quest to make Reddit profitable,” commented one user.
Despite these concerns, Huffman asserts that any new revenue models will complement, rather than replace, traditional Reddit experiences. “Adding new ways to use Reddit… just expands the platform,” he explained. “We haven’t seen it negatively impact the existing Reddit experience.”
Since its IPO in March, Reddit has focused on increasing revenue. For Q2, Reddit’s revenue climbed to $281.2 million, marking a 54% year-over-year increase, largely due to the growth of its advertising business. The company has also struck profitable deals with tech giants such as Google and OpenAI to leverage Reddit data for AI training purposes.
“Other revenue surged over 690% year-over-year to $28.1 million, driven primarily by data licensing agreements signed earlier this year,” the company reported.
However, not all firms are paying for Reddit data licenses. For instance, Reddit blocked Microsoft from scraping its site, a move Huffman described as “a real pain in the ass.”
“Our goal is to maintain relationships with all parties, but we must be cautious about where Reddit data is used and how it is utilized,” Huffman said.
Additionally, Huffman teased the possibility of AI-generated summaries for search results on Reddit, aiming to help users explore new subreddits more effectively.
