During the Bloomberg Technology Summit, Reddit Inc. announced plans to launch new products related to their marketplace efforts in the coming months. The company, which recently surpassed sales expectations in their first earnings report after going public, is looking to diversify its revenue streams beyond advertising and into what CEO Steve Huffman refers to as the “user economy.” This involves users making money from others on the platform through various means such as selling subscriptions, digital gifts, collectibles, physical goods and services.
Reddit sees other social media companies like Meta Platforms Inc. and Nextdoor as competitors when it comes to establishing marketplaces for buying and selling goods. However, Reddit’s upcoming products will include new versions of awards, which are digital gifts that users can exchange. Despite the potential risks of scams or fake goods in online marketplaces, Huffman highlighted Reddit’s unique content moderation program as a key advantage. Content on Reddit gains popularity through upvotes from other users, ensuring that valuable and authentic content rises above scams.
In addition to expanding their marketplace offerings, Reddit is also focused on striking data licensing deals with AI companies and entering international markets. Huffman emphasized Reddit’s ability to curate quality content among the noise present on social media platforms, setting them apart as a trusted source for authentic interactions.