this post was submitted on 07 Aug 2024
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Reddit CEO Steve Huffman has hinted that in future some subreddits could be paywalled, as the company seeks to devise new sources of income.

He suggested that the company might experiment with paywalled subreddits as it looks to monetize new features. “I think the existing, altruistic, free version of Reddit will continue to exist and grow and thrive just the way it has,” Huffman said. “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.”

This is another move likely to anger Redditors. While the platform is a commercial enterprise, its value derives almost entirely from freely offered user content. That means Redditors feel at least some sense of ownership in a community endeavour, so the company needs to tread carefully when it comes to monetization at user expense.

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[–] givesomefucks@lemmy.world 51 points 4 months ago (5 children)

...

Wouldn't the contributors to those subs just make a new one that's not paywalled?

Reddit is going to be asking users to pay to generate content on specific subs, but they're forgetting again that the sub isn't the important part, it's the users.

This would just fracture the biggest subs and destroy the communities.

[–] originalfrozenbanana@lemm.ee 14 points 4 months ago

Sure till they copystrike their own subs

[–] captainjaneway@lemmy.world 9 points 4 months ago

The common thread I've seen online is this:

  • Google's search algorithm sucks. I always append reddit.com to get good forum results
  • Reddit's search algorithm sucks.

These two tools are quickly becoming coupled for Google-Fu expert users. The historical forum history that goes back 3-5 years on Reddit is their goldmine. You can't just make a new subreddit overnight when a sub gets paywalled. All of that historical data will be lost and paywalled.

I think a paywall could be an effective money maker for Reddit because they've basically become their own Google - in that each subreddit acts like a unique website with real, human, responses. The only problem is that reddit has a god awful search algorithm that they refuse to improve. So people use Google to essentially search reddit. The "whales" so-to-speak are the only people they need to capture. People like myself (frugal people) aren't in their peripherals. But the people that think "I'll pay each month for NYT" or "it's just a few dollars for the WSJ" are going to use the same logic for Reddit: "it's a small amount of money to have access to high quality forums on X, Y, and Z".

In addition, this might bolster Reddit's content even further. Since paywalled subs will automatically reduce the amount of AI content spammed on them, they will inherently increase the legitimacy of each forum.

Lastly, this will give them a path towards monetization for moderators which doesn't require them skimming off of their own pay checks to achieve it.

Do I like this? No. Is this fair? Also no. People contributed to Reddit under the impression that their data would be available and accessible to anyone with an Internet connection. That implicit guarantee is being violated. It's an afront to the hard working individuals that have developed these communities brick by brick.

But does this "solution" make a lot of business sense? Possibly. As long as they survive the changeover in the short term, I think they'll thrive from this choice for the reasons I stated above.

Again, it's going to give them a pathway for:

  • Monetization
  • Reduce AI spam (a big fear of all forums)
  • They could make even more money off the back of this

I'm pretty much over Reddit anyways. Lemmy has been my backup social media for a while now. The Internet is still free - for now. I just hope we can all find better search engines and forums in the future. Google has been degrading. Reddit has been locking things down. We obviously need to pivot to other platforms. Or maybe just go back to the old days where you find niche forums hosted by some dude in his basement. Nothing wrong with that.

[–] HobbitFoot@thelemmy.club 5 points 4 months ago

I've seen some content creators having a discord channel that is pay to get into where the content creator participates in it as a way to generate additional money. I suspect Reddit wants to do something similar and take a cut of fee.

And I fully expect this to devolve into becoming a new OnlyFans.

[–] merc@sh.itjust.works 2 points 4 months ago

Wouldn’t the contributors to those subs just make a new one that’s not paywalled?

My guess is that the paywalled subs are going to be a way of interacting with celebrities. Like, a House of the Dragon sub featuring AMAs with cast members, but behind a paywall. You could make a House of the Dragon non-paywalled sub, but the celebs wouldn't post there because they have a side-deal where they get paid for posting in the paywalled subreddit.

[–] rebelsimile@sh.itjust.works 1 points 4 months ago

I think you’ve gamed out the next step the right way, what that means is that older subs and their content just get locked away behind the paywall. Eventually all of reddit is on the slack free account.