Reddit has concluded its second earnings call since going public, with CEO Steve Huffman outlining potential platform transformations. Huffman revealed plans to introduce AI-powered search results later this year.
Huffman said:
Later this year, we will begin testing new search result pages powered by AI to summarize and recommend content, helping users dive deeper into products, shows, games and discover new communities on Reddit.
Acknowledging the platform’s longstanding search limitations, Huffman emphasized the potential of search to attract new users and generate substantial advertising revenue.
Huffman also alluded to potential revenue streams beyond advertising. He suggested that Reddit might explore paid subscriptions for specific subreddits to monetize new features.
Huffman added:
I think the existing, altruistic, free version of Reddit will continue to exist and grow and thrive just the way it has. But now we will unlock the door for new use cases, new types of subreddits that can be built that may have exclusive content or private areas, things of that nature.
A Reddit representative declined to provide further details about Huffman’s comments. However, the company’s pursuit of new business avenues since its public debut earlier this year is well-documented. Reddit has secured multi-million dollar licensing agreements with tech giants Google and OpenAI and has taken measures to restrict access to search engines that do not compensate the platform.
Reddit has encountered instances where certain entities have utilized its content without full transparency. In response, the platform has blocked access to safeguard user privacy and content integrity. Reddit emphasizes the importance of understanding how its data is employed and seeks clarity regarding the usage of its content.