During the Bloomberg Technology Summit, Reddit Inc. announced plans to release new products related to their marketplace efforts in the next few months. The company, which recently surpassed sales expectations in their first earnings report after going public, aims to diversify its revenue streams beyond advertising and into what CEO Steve Huffman terms 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.
While other social media companies like Meta Platforms Inc. and Nextdoor have established marketplaces for buying and selling goods, Reddit sees them as competitors. Reddit’s upcoming products will include new versions of awards, which are digital gifts 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, entering international markets, and exploring potential acquisitions in areas like search. 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.