Reddit Eyes Paywalls as Part of Revenue Expansion Strategy

[Social Media]

 

One of the internet’s most widely used free platforms could soon introduce paywalls, signaling a major shift in how users engage with its content. Reddit is exploring a feature that would allow some of its communities, known as subreddits, to create exclusive content accessible only to paid members.  

 

Reddit CEO Steve Huffman hinted at the development in a recent video, confirming that the platform is actively working on the feature. “It’s a work in progress right now, so that one’s coming ... We're working on it as we speak,” Huffman said during a videotaped Ask Me Anything (AMA) session on Thursday. He also confirmed that the rollout of “paid subreddits” is a key feature planned for 2025.  

 

The introduction of paywalled communities would enable subreddit creators to monetise their content, potentially turning select spaces into premium hubs. However, specific details regarding how these paid communities would be priced or what criteria subreddits must meet to qualify for the feature remain unknown. The exact timeline for its implementation is also unclear.  

 

In addition to the potential paywall, Huffman revealed that Reddit is working on an artificial intelligence-powered feature that would summarise search results. The company is also developing new tools aimed at laying the foundation for an eventual Reddit marketplace, broadening its efforts to generate revenue beyond advertising.  

 

The shift toward diversifying income streams follows a similar path taken by other platforms like X and Discord, which have introduced monetisation options for creators. Reddit’s move comes in the wake of its Q4 2024 earnings report, where the company reported a quarterly income of $71 million but a net loss of $484.3 million for the year. The platform also missed its global daily active unique users target by two million, a shortfall Reddit attributed to changes in Google’s search algorithm.  

 

Beyond paywalled content, Reddit has also been securing deals to license its user-generated data to major tech companies like Google and OpenAI. A recent agreement with Google, reportedly valued at around $60 million, underscores the significance of Reddit’s vast repository of discussions as a resource for training artificial intelligence models. "We are still talking to some of the big players,” Huffman said last week.  

 

Despite concerns that paywalls could alter the platform’s free-access culture, Huffman remains optimistic about Reddit’s trajectory. In August, he reassured users that the site, which boasts over 100 million daily active users, would “continue to exist and grow and thrive” even with the introduction of paid content.

 

Based on a report by The Independent  2025-02-18