Reddit’s advertising revenue grew to $315.1 million, while “other” revenue reached $33.2 million on account of “data licensing agreements signed earlier this year.” Both Google and OpenAI have cut deals with Reddit to train their AI models on its posts.
In a letter to shareholders, Reddit CEO Steve Huffman attributed the recent increase in users to the platform’s AI-powered translation feature. Reddit started letting users translate posts into French last year before expanding to Spanish, Portuguese, Italian, and German. Now, Huffman says Reddit plans to expand translation to over 30 countries through 2025.
I’m not expecting a big exodus, but rather a slow decline in both the number of users and their engagement. With a few peaks here and there that seem to revert the downwards trend, but each peak being smaller than the one before.
They won’t be leaving for the same reason as most people here did, pissed at the IPO-related changes (such as killing 3rd party apps). It’ll be more like “…meh, why would I check Reddit? There’s better stuff elsewhere.” We can already see the decline of the content quality in Reddit now; it’ll get only worse over time.
I think that most will end in Discord. Some in Bluesky, and some will simply touch grass. Conservatives might end in
Minitrue“truth social” or crap like that.Facebook might perhaps absorb some of the former Reddit users. It feels disgusting for the privacy conscious, but for them it’ll be a simple matter of not finding interesting stuff in Reddit.
The same applies to Reddit’s liquid profit - for now, that value extraction still creates a small peak on raw profit, to the point that the bottom line became positive; later on the peak will barely reach the surface; later on, value extraction will be necessary to avoid making the bottom line too negative.