Reddit plans to introduce paywall for exclusive content this year
What's the story
Reddit CEO Steve Huffman has announced the company's plan to introduce a paywall for some content later this year.
The revelation came during an Ask Me Anything (AMA) session on Thursday.
Huffman had previously shown interest in creating a new kind of subreddit with "exclusive content or private areas" that would require users to pay for access.
Confirmation
Huffman confirms work on paid subreddits
When asked about developing content only for paid members, Huffman confirmed, "It's a work in progress right now, so that one's coming... We're working on it as we speak."
He also revealed plans to introduce "paid subreddits" as part of Reddit's new features in 2025.
However, he clarified that the paywall would only apply to certain new subreddit types and not existing ones.
Assurance
Reddit's free version will continue to thrive
Huffman assured users that even with paywalled content, the free version of Reddit would "continue to exist and grow and thrive."
He said this in response to concerns about how the platform would balance paid and free content without alienating its current user base.
The CEO also acknowledged potential challenges in managing discussions on paid subreddits, especially if they rely on volunteer moderators.
Monetization strategy
Plans for monetizing user interactions
Huffman revealed that Reddit is "laying the foundation" to monetize commerce within subreddits this year.
This would include transactions made by users purchasing items from other users via subreddit discussions.
With marketplace features coming into play, these transactions could be conducted without leaving the platform.
However, Huffman noted that this aspect of monetization might still be some time away.
Ad revenue
Ad strategy and financial performance
Reddit executives also spoke about plans to add more ads on the platform.
This comes after Reddit's API policy changes led to the discontinuation of most third-party apps used to access Reddit.
The company, which makes money mostly through ads, can only show them on its native apps and website.
In its Q4 2024 earnings results, Reddit reported a net income of $71 million for the quarter ending December 31 and a net loss of $484.3 million for 2024.