Reddit is changing the course on its plans to put some submarines behind a paywall. CEO Steve Hofman said the company is “removing the resources” because it doubles the search.
During the company’s recent revenue call, Huffman said the Reddest site was “depriving” its work on the “consumer economy” measures to put more resources to transform the site into “going out”. In the follow -up AMA on the Reddate, it confirmed that it includes stopping work on the paid subdisons.
He wrote, “We are removing the resources from some sectors, such as working on the consumer economy.” “It also includes some of the things that some people have cited as a paid subdisites.” Although Huffman added, “This is still an opportunity we believe,” this is a remarkable departure from the comments in February, when he said that such features will be revealed in 2025.
Since then, the priorities of the Reddit have apparently changed drastically. According to Huffman, although the purpose of paid communities was to appeal to Redded Power users, the company still needs to expand its user base. In another response to the CEO, the CEO said, “People working on the first user economy will be involved in our efforts to improve the basic app, including on -boarding and personalization.” “This is our most important need today, which is the Login Basic Consumer growth.”
Although Huffman has spent last year, pointing to salaried features, it is not difficult to understand why Reddit will now be removed from this model. As Huffman explained, advertisement is still the most important part of the company’s business. And adding more basic users to the platform will be the key to expanding this business. In order to put in this context, during the last quarter, Reddate draws 5 465 million in advertising revenue and only $ 35 million from “other” sources, such as data licensing and Reddate Premium. Even if Paywald Subsites can increase this “other” numbers substantially, the company will still be a small part of what is making with the advertisers.
So while the payment subdidates can still be on the company’s roadmap, consumers should not expect to see them at any time. However, they may expect to see more ads on Reddate over time. For example, Huffman said the company “ads on the search return pages … ads as a future opportunity.”
