Reddit Inc., led by co-founder and CEO Steve Huffman, announced plans to launch new products related to its marketplace efforts at the Bloomberg Technology Summit. The 19-year-old company recently exceeded sales expectations in its first earnings report as a public company. Moving beyond advertising, Reddit aims to broaden its revenue streams by focusing on what Huffman calls the “user economy” – allowing users to make money from others on the platform.
Currently, users on Reddit can earn money through subscriptions, digital gifts, collectibles like avatars, and selling physical goods and services on certain forums. While other social media platforms have established marketplaces for buying and selling goods, Reddit views Meta Platforms Inc. (with Facebook Marketplace) and neighborhood app Nextdoor as competitors. In the near future, Reddit will introduce new versions of digital gifts called awards, among other products.
Huffman highlighted Reddit’s unique content moderation system as a key factor in preventing scams and fake goods common on other social media marketplaces. On Reddit, content gains popularity through “upvotes” from users, ensuring that valuable and authentic content rises to the top. Huffman underscored that Reddit excels at highlighting good content amidst a sea of noise.
Additionally, Reddit plans to pursue data licensing agreements with AI companies, enter international markets, and consider potential acquisitions in areas like search. The company continues to explore opportunities for growth and expansion beyond its current scope.