Reddit Puts Its Plans For Paid Subreddits On Hold

Reddit is reversing people connected its plans to put immoderate subreddits down a paywall, astatine slightest for now. CEO Steve Huffman said nan institution is "shifting resources away" from nan effort arsenic it doubles down on search.

During nan company's caller net call, Huffman said that Reddit was "deprioritizing" its activity connected "user economy" initiatives successful bid to put much resources into turning nan tract into a "go-to hunt engine." In a follow-up AMA connected Reddit, he confirmed this includes pausing activity connected paid subreddits.

"To enactment focused connected what matters most, we’re shifting resources distant from a fewer areas, specified arsenic activity connected nan personification economy," he wrote. "This includes what immoderate person referred to arsenic paid subreddits." Though Huffman added that "it's still an opportunity we judge in," it's a notable departure from comments he made in February, erstwhile he said specified features would beryllium rolling retired successful 2025.

Reddit's priorities person apparently changed considerably since then. While paid communities were meant to entreaty to Reddit powerfulness users, nan institution still very overmuch needs to turn its personification base, according to Huffman. "The folks antecedently moving connected personification system will subordinate our efforts to amended nan halfway app, including onboarding and personalization," nan CEO explained successful different AMA response. "That gets astatine our astir important request today, which is logged-in halfway personification growth."

While Huffman has spent nan past twelvemonth hinting astatine paid features, it's not difficult to understand why Reddit would now beryllium shifting distant from that model. Advertising is still very overmuch nan astir important portion of nan company's business, arsenic Huffman explained. And adding much halfway users to nan level will beryllium cardinal to increasing that business. To put this successful perspective, during nan past quarter, Reddit pulled in $465 cardinal successful advertisement gross and conscionable $35 cardinal from "other" sources, for illustration information licensing and Reddit premium. Even if paywalled subreddits could substantially summation that "other" number, it would still beryllium a mini fraction of what nan institution is making from advertisers.

So while paid subreddits whitethorn still beryllium connected nan company's roadmap, users shouldn't expect to spot them immoderate clip soon. They can, however, astir apt expect to spot much ads successful much places connected Reddit complete time. For example, Huffman said that nan institution sees "ads connected hunt return pages … arsenic a early opportunity."